Kyoto-based taxi operator MK Co.'s subsidiary in Nagoya began charging 500 yen initial fares Wednesday, about 20 percent cheaper than other taxi firms there, as competition in the industry intensifies.
Twenty-five midsize cabs will offer the discount service, which will cover the first 1.8 km. Passengers will have to pay an additional 50 yen for every 214 meters after that distance.
Nagoya MK plans to run the taxis for six months and increase the number to 100 by the end of March.
The local transport bureau of the Land, Infrastructure and Transport Ministry granted permission for the discount service July 5 on condition that the carrier will review safety aspects after six months.
MK ran a free-ride taxi service in Nagoya from December to January after the ministry lost lawsuits it had filed against the company's plan.
Sadao Aoki, owner of the MK Group, said Wednesday he is contemplating suing the government for compensation, as the lawsuits filed by the transport ministry delayed the start of the taxi service and damaged business.
"It took a long time for us to begin business," Aoki said in a ceremony marking the launch of the cab service. "Reformers, as seen in the case of Prime Minister (Junichiro) Koizumi and former Nagano Gov. (Yasuo) Tanaka, face uphill battles."
Last Friday, One Coin Taxi started offering a discount service in Osaka, charging an initial fare of 500 yen for the first 2 km.