Number of passengers carried via commercial buses in Japan FY 2010-2019

In the fiscal year 2019, the number of passengers carried via public buses in Japan amounted to around 4.53 billion. Buses are an alternative land transportation system in Japan, supplementing rapid transit in the cities and Shinkansen bullet trains for long-distance travel.

The weight of demographic change dragging down profitability

With operating revenue and passenger numbers decreasing in rural areas, bus associations in Japan keep pointing out the dire business conditions they face. In the countryside, the industry struggles with the impact of Japan’s demographic change: A low birthrate and a rapidly aging population. Since the few young people in rural areas tend to move into the cities, while the older and less mobile generations stay, the effects of this demographic change become even more accentuated: Areas depopulate, demand shrinks, bus lines become unprofitable, and businesses need to adapt their services. Bus businesses have been writing red numbers within the last decade. Only in major cities have a few of them been profitable in some years.

Mobility-as-a-Service (MaaS): A chance for regional revitalization?

The basic idea of MaaS is a mobility concept where various means of public transportation pool their data so users can access these services optimal to their personal needs, ideally booking and paying via a single smartphone application. Worldwide, the MaaS and the shared mobility market are expected to increase rapidly. In Japan, the government-backed initiative called ‘SmartMobility Challenge’ regards MaaS as a vehicle to tackle, among others, the problems mentioned above. The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) selects numerous regions, where demonstration experiments are supported and monitored. The MLIT projects focus on their location‘s characteristics, categorized into metropolitan suburbs, regional cities, rural suburbs, depopulated areas, and tourist areas.