Go's IPO raises ¥88.6 billion ($553 million) in one of Japan's quietest listing seasons, with plans to invest in research and development for robotaxis and business expansions. The company, which operates Japan's largest ride-hailing app, will use the funds to address an existential issue: a shortage of taxi drivers. According to Japan's Ministry of Land, Infrastructure, Transport and Tourism, the number of taxi drivers has fallen 20% in recent years due to an aging population.
Go has partnered with Waymo, an autonomous driving subsidiary of Alphabet, alongside Nihon Kotsu, one of Japan's biggest taxi operators. The company plans to begin fully driverless operations when its technology is validated and regulatory approval is received. In the meantime, Go is focusing on traditional business growth through partnerships with major payment apps.
The IPO comes as Japanese startups are being encouraged by the government to sell themselves rather than go public. Global institutional investors such as BlackRock, Wellington Management, and M&G Investment Management have invested in Go. The stock has since pulled back below its offering price, closing at ¥2,314 on Friday.
