Lower Utilization and Performance Impact Due to Crew Shortages

「In the taxi division, revenue increased due to a higher utilization rate resulting from an increase in drivers, as well as the implementation of taxi fare revisions in the Tama area on 16 March 2026 and in the Tokyo Musashino-Sanshō area on 20 April of the same year. Revenue was ¥3,125 million, up 7.2% year on year.」

「In addition to an increase in drivers resulting from the success of taxi driver recruitment activities, a priority initiative since the previous fiscal year and earlier, we accepted drivers from partner companies. This increased taxi vehicle utilization and resulted in higher revenue.」

「In addition to an increase in drivers resulting from the success of taxi driver recruitment activities, a priority initiative since the previous fiscal year and earlier, we accepted drivers from partner companies. This increased taxi vehicle utilization and resulted in higher revenue.」

「Consolidated results for the interim consolidated accounting period under review benefited from the smooth acceptance of the taxi fare increase implemented in November 2022 and improved vehicle utilization as the driver shortage was alleviated. Revenue was ¥9,348 million, up 1.7% year on year.」

「Securing drivers is the most important issue in the passenger vehicle transportation business. To meet increasingly diverse lifestyle-support and welfare-related needs associated with the arrival of an aging society, we will mobilize the full strength of the Daiwa Group to further improve “peace of mind, safety and hospitality.”」

「As a result, revenue from the passenger vehicle transportation business, including the taxi and hire-car divisions, was ¥6,611 million, up 12.3% year on year. However, due to higher personnel expenses and advertising expenses associated with recruitment activities, the business posted an operating loss of ¥16 million, compared with operating profit of ¥43 million in the same period of the previous year. To address the most important priority in the passenger vehicle transportation business, securing drivers, and the increasingly diverse demand for lifestyle support and welfare services accompanying the arrival of an aging society, we will draw on the full strength of the Daiwa Group and work to further improve “reassurance, safety and hospitality.”」

「As a result, revenue from the passenger vehicle transportation business, including the taxi and hire-car divisions, was ¥5,886 million, up 30.0% year on year, and operating profit was ¥43 million, compared with an operating loss of ¥693 million in the same period of the previous year. Securing drivers is the most important issue in the passenger vehicle transportation business. To meet increasingly diverse lifestyle-support and welfare-related needs associated with the arrival of an aging society, we will mobilize the full strength of the Daiwa Group to further improve “peace of mind, safety and hospitality.”」

「As before, we are pursuing active recruitment focused on our website as a measure to address the driver shortage, an issue for our group.」

「As a measure to address the driver shortage, an issue for our group, we continued to pursue active recruitment and focused on customer service and manners education and training for new hires, but this did not result in a significant increase in the number of drivers.」

「During the consolidated first quarter under review, we continued to pursue active recruitment, as in the previous fiscal year, as a measure to address the driver shortage, an issue for our group. By providing sufficient education and training in customer service and manners, we are increasing the number of suitable, high-quality personnel.」

「Securing drivers is the most important issue in the passenger vehicle transportation business. To meet increasingly diverse lifestyle-support and welfare-related needs associated with the arrival of an aging society, we will mobilize the full strength of the Daiwa Group to further improve “peace of mind, safety and hospitality.”」

「In the taxi division, revenue per vehicle in service, which had been trending upward through the third quarter, declined 1.4% from the previous fiscal year due to the spread of COVID-19. In addition, vehicle utilization declined 3.0% due to the driver shortage, resulting in revenue of ¥8,987 million from all 6 taxi subsidiaries, down 7.5% from the previous fiscal year.」

「Revenue for the cumulative consolidated third quarter under review was ¥12,400 million, down 3.7% year on year, because vehicle utilization has declined in the passenger transportation business, our main business, due to the chronic driver shortage.」

「Revenue for the cumulative consolidated second quarter under review was ¥8,125 million, down 3.6% year on year, because vehicle utilization has declined in the passenger transportation business, our main business, due to the chronic driver shortage.」

「Revenue for the cumulative consolidated first quarter under review was ¥4,046 million, down 3.1% year on year, because vehicle utilization declined in the passenger vehicle transportation business, our main business, due to the driver shortage.」

「The environment surrounding our core passenger transportation business is changing rapidly against the backdrop of the development of mobility-as-a-service (MaaS) and autonomous driving, while the sense of a driver shortage has also been intensifying.」

「During the cumulative consolidated third quarter under review, the Japanese economy recovered from a temporary downturn caused by natural disasters and abnormal weather. Employment conditions and corporate earnings continued on a gradual recovery trend, but the labor supply-demand balance remained tight.」

「However, utilization remained challenging at 69.0%, as in the same period of the previous year, and we will continue our efforts to secure personnel, including recruiting new graduate and female drivers.」

「We will continue to strengthen our efforts to improve the still-challenging utilization rate, including recruiting new graduate and female drivers.」

「We will continue to strengthen our efforts to improve the still-challenging utilization rate, including recruiting new graduate and female drivers. In addition, we participated in a demonstration experiment for advance-determined fares in August last year and for shared taxis in January this year, and will take the lead in implementing the 11 measures addressing ridesharing. We will also develop a jointly operated dispatch app with Tokyo Musen Cooperative and Checker Cab Musen Cooperative. In addition, Sony Corporation, Sony Payment Services Inc. and our company, together with 7 taxi companies, established a new company, Minna no Taxi Co., Ltd., to enhance a range of services, including a dispatch system using AI technology to forecast taxi demand and payment agency services.」

「We will continue to strengthen our efforts to improve the still-challenging utilization rate, including recruiting new graduate and female drivers.」

「Although utilization in the taxi division remained challenging, revenue per vehicle in service increased 0.8% and the number of sales runs increased 1.3%. Revenue from all 6 taxi subsidiaries therefore increased 0.1% year on year to ¥4,747 million.」

「There was also an increase in advertising expenses and training costs for newly hired drivers as we strengthened recruitment activities, our most important priority. As a result, operating profit was ¥168 million, down 18.9% year on year, ordinary profit was ¥162 million, down 14.5%, and profit attributable to owners of the parent was ¥109 million, down 24.5%.」

「The passenger transportation industry, including our company, is facing intensifying competition every day due to the worsening driver shortage caused by an aging driver workforce and difficulties in recruitment, aggressive competition from new market entrants amid advances in IT technology, and the lifting of restrictions on sharing businesses as part of government-led regulatory reform.」

「In the passenger vehicle transportation business, taxi revenue declined despite a decrease in the number of drivers, as we focused on strengthening sales capabilities through sales guidance, including promoting conduct based on the principles of “reassurance, safety and hospitality” set out in our manual. In the hire-car business, despite the impact of changes in the operating environment of client companies and price competition with other companies, we focused on sales activities to develop new customers. As a result, revenue from the passenger vehicle transportation business was ¥9,241 million, down 3.2% year on year, and operating profit was ¥74 million, down 36.0%.」

「In the six months ended in the second quarter of the current fiscal year, revenue declined 6.3% year on year to ¥8,101 million, mainly because utilisation in the passenger automobile transportation business fell due to a driver shortage, while crude oil prices declined in the automotive fuel sales division of the sales business and orders for housing materials declined in the metal products manufacturing and sales division.」

「Taxi revenue showed no improvement in utilisation because of the driver shortage, and we focused on driver sales guidance, including promoting conduct based on the manual's principles of "reassurance, safety and hospitality." As a result, revenue from the passenger automobile transportation business was ¥3,040 million, down 3.4% year on year, and operating profit was ¥35 million, down 19.6% year on year.」

「The hire-car and taxi industry faced a difficult environment, including lower utilisation resulting from the ongoing shortage of drivers.」