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Business and Japan

Osaka's Low-Fare Cab "One Coin Dome" Win Suit

By November 21, 2015 at 6:59 pm

Here's an ambitious, customer-oriented cab company in Osaka that drives you for 500 yen to start where the law says 660. Customers naturally pick this cab over the rest of the law-abiding local cabs. The state filed a suit at the Osaka District Court against the 500-yen cab company and its "unlawful business".

The Osaka District Court ruled November 20 against the state and turned down its plea as irrational.

Here's a quick rundown on the mud-slinging battle over cab fares.

Formerly One Coin Dome stuck to its own fare to start (500) when others to theirs (660) as prescribed by law and both cohabited in some sort of harmony until the authorities issued a decree requiring One Coin Dome to "raise" its fare (to 660) by law. One Coin Dome rejected and appealed to have the decree suspended.

The district court ruled November 20 that the authorities had irrationally defined the lower limit of cab fares with no due consideration for the cab company (One Coin Dome) operating below the lower limit.

The decree in question had virtually intended to force One Coin Dome out of business by setting the bottom line of cab fares below which One Coin Dome was operating.

One Coin Dome Co. Ltd. was founded in 2004 and pledges itself to "continue to be a cab company for the customers" operating 95 cars. Commenting on today's ruling, President Katsuyoshi Machino of One Coin Dome said:

"We won the case this time, and I feel relieved. The point is unless fares are kept low cab industry cannot activate itself".

Director Kazuhito Yoshioka of the same commented:

"Probably more cab companies will follow suit and reduce fares. It all goes well if the customers come to make more use of cabs in daily life. It's a free competition - survival of the fittest. We are ready for the challenge."

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