Japanese regional banking group Senshu Ikeda Holdings’ entry into the reservation-based transit bus industry is aimed at boosting the regional economy, President and CEO Atsushi Ukawa said in a recent interview.
“Even regional banks in urban areas need to think about serving the local community,” Ukawa said of the first reservation bus operations by a regional bank in Japan.
He said the Osaka-based company will work with local governments to expand its operating area to complement public transportation.
Senshu Ikeda operates an “on-demand bus,” which uses artificial intelligence to operate on the dates, times and locations of the user’s choosing. The company partnered with companies including auto parts maker Aisin to launch bus operations on a trial basis in four municipalities in Osaka Prefecture in January 2023. It has since introduced full-fledged paid services in some areas.
Ukawa said the company has received more positive feedback than expected.
Securing regional transportation for the elderly is a pressing issue in Japan, as fixed-route bus services are being cut or reduced due to the shrinking population. Senshu Ikeda aims to build a business model in which the main source of profit is commission fees from municipalities that entrust bus operations to it.
“A lot of local governments are interested in (the business),” Ukawa said. “There are one or two cases in particular that will probably be dealt with within the year.”
He added that the company is in talks with about 10 municipalities. Senshu Ikeda plans to potentially expand operations to neighboring Hyogo Prefecture.
