Nine companies received licenses Thursday from the Transport Ministry to start taxi service in the Tokyo area, the first such permission granted in more than three decades.
The move is a result of the nation's ongoing deregulation effort. The firms, which received the licenses at the ministry's Kanto District Transport Bureau, were the first issued in the metropolitan area since 11 firms were approved in 1964, according to a ministry official.
The move will add 304 cabs -- 241 midsize and 63 small vehicles -- to the 45,176 taxis already operating in the area. Itako Unso Co., one of the nine firms, received approval for its small-taxi fare of 580 yen for the first 2 km, bringing more variety to existing drop fares, which include 640 yen for 2 km, and 320 yen and 290 yen for the first 1 km.
Fares for a midsize taxi currently stand at 660 yen or 650 yen for the first 2 km, while some charge 340 yen for the first kilometer. One of the nine new entrants to the market, Tokyo MK taxi, is offering a discount fare of 600 yen for the first 2 km.
Of the nine firms, two are newly established and three are cargo transport companies. The remaining two reflect the entry of taxi companies already operating in other areas. The ministry expects these new firms to start operating within four months.
Although 13 carriers originally filed applications for licenses in August, two withdrew and the ministry judged two as improper, citing such reasons as inadequate parking facilities.