Toyota to offer Uber-like services for taxis using AI

tokyo — Predicting demand for rides has been a key part of Uber Technologies’ strategy for disrupting taxi and transport providers. Now, Toyota Motor Corp is betting that it can direct drivers just as efficiently.

Asia’s biggest car manufacturer began testing a new taxidispatch system last month by using data from smartphones, cab locations, weather patterns and other factors to determine the most efficient distribution of Tokyo’s taxi fleet. The project, which includes taxi-ordering startup Japan Taxi, telecommunications carrier KDDI Corp and Accenture, has a 94 per cent accuracy rate, the companies said in a statement on Friday. While Toyota has backed San Francisco-based Uber as an investor and partner, the automaker has also made investments in Japan Taxi, an Uber rival run by the chairman of Tokyo’s biggest taxi operator. Akio Toyoda, Toyota’s president, is betting that data will be a key part of the company’s future, and has sought out partnerships with tech companies.

One of the key differences between traditional taxi-dominated markets and those with ride-hailing services is the availability of rides during peak times, especially when it’s raining. Taxis usually become harder to find. Using software and flexible pricing, Uber and rivals such as Lyft, Grab and Didi are able to direct drivers to areas with greater demand, boosting efficiency and profits. During Toyota and Japan Taxi’s pilot program, drivers using the system were able to boost their sales by about 20 per cent, better than the average of 9 per cent, the Toyota City-based company said.