Go, the taxi booking app operator that pulled off Japan’s biggest initial public offering this year, said it is sustaining strong ride volume even after fare hikes. President Hiroshi Nakajima said riders have absorbed higher prices and demand hasn’t fallen. Taxi users are generally less price-sensitive because they prioritize convenience that public transportation can’t offer, he said.
The Goldman Sachs Group-backed firm, which listed shares in June, is betting on more spending on cab rides despite rising inflation. In Tokyo, fares increased 10% in April. That followed a larger hike of 14% in 2022.
Japanese taxi fares are among the highest in the world. Investors so far seem to have faith. Go shares have soared 63% since the company’s IPO, well above the TSE Growth Market 250 Index’s 12% gain.
The company aims to boost average revenue per ride by expanding luxury car services and targeting corporate clients, both of which have contributed to higher sales, Nakajima said.
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