Mobility Working Group (8th)

Last Updated:: Mar 27, 2025

Overview

Date: Tuesday, February 25, 2025 (2025), from 13:00 to 15:00
Location: online
Business

Opening
Business
- The Role of Transport Trading Companies and the Role of the Common Infrastructure Supporting Transport Trading Company Functions
  - Role as a transportation company
  - How the Common Foundation Supporting Transport Trading Company Functions Should Be
    - Masashi Yumikake, Executive Officer, MONET Technologies Co., Ltd.
    - Mr. Yohei Hatakeyama, Hakuhodo Co., Ltd., Mobility Community Representative, digitalisation Horizontal Expansion Promotion Council
- On Digital Public Goods and Their Horizontal Development
  - On Digital Public Goods and Their Horizontal Development
  - Exchange of views
- Other
  - About the future schedule
Closing

Material

Minutes

Director Asayama: Thank you for As the scheduled time has passed, the "8th Mobility Working Group" will be held from now. Thank you for attending the working group today, even though you are busy. My name is Asayama from the secretariat and I will be the MC today. Nice to meet you. I would like to hear greetings from Chief Mori for the opening of the working group. Nice to meet you, Chief Mori.

Mori Chief: Thank you for gathering here despite your busy schedule. On the occasion of the 8th Working Group meeting, I would like to say a few words. In the Working Group meeting before last, you discussed the functions of transportation trading companies, and today, based on that discussion, I would like to ask you to discuss who will be responsible for the functions of transportation trading companies and how to make the functions sustainable. This time, the secretariat will explain in what form they think about the "functions of transportation trading companies," and after that, the people in charge from Hakuhodo Co., Ltd. and MONET Technologies Co., Ltd. will provide a topic on "the ideal form of the common foundation supporting the functions of trading companies." I would like to ask each ministry and agency to make use of their knowledge to give us their frank opinions, and to actively discuss it based on the suggestions of experts.

Director Asayama: Thank you for Thank you very much. Next, I would like to check the materials. As stated in the agenda that I sent to you in advance, the agenda, materials 1 to 6, and the list of attendees. If there is any shortage, please contact the chat function of Teams or e-mail the secretariat. As for the introduction of today's attendees, due to time constraints, I would like to hand out the list of attendees at hand.

Now, let's move on to the agenda. Today, as Mr. Chief mentioned in his address, we will discuss about the Transport Trading Company. First, EY Strategy & Consulting Co., Ltd., which Mr. Digital Agency has asked to organize the functions of the Transport Trading Company, will give an explanation, and then the two of you will provide topics such as the common infrastructure that supports it. After that, Mr. Director-General Digital Agency will explain about the ideal way of digital public goods including the functions of the Transport Trading Company, and we will proceed with the discussion about the Transport Trading Company. Thank you, Mr. Kato.

Mr. Katō: I would like to explain in Handout 2 how transportation trading companies function. First, I would like to explain the background of why transportation trading companies are needed. Please refer to page 3 of Handout 2. During the population growth period, transportation companies were able to secure a certain level of operation rate if they provided transportation services to meet transportation demand. However, as the population decreased, particularly in rural areas, there were many inefficient and unprofitable services that operated with low occupancy rates, such as town buses. When we conducted interviews with residents in such areas, we were able to confirm the emerging demand, such as the high transportation load borne by the child-rearing generation, and the potential demand, such as elderly people who have returned their licenses and are putting up with transportation. Despite these transportation demands, the number of users of public transportation is decreasing. For example, in the graph on the lower left, the number of users of town buses on the supply side is decreasing year by year, and it is difficult to secure profitability. On the other hand, when we asked the opinions of the demand side on the right, it was difficult to use public transportation in terms of convenience, and there was dissatisfaction. Therefore, I think it is necessary to consider and connect both supply and demand as one.

On page 4 of Appendix 2, we review the background from the macro data. In rural areas other than urban areas, we review the data of Town A, City B, and City C for underpopulated areas in hilly and mountainous areas, local cities, and suburban cities, respectively, as examples. Among them, we consider what kind of group should be targeted as a group with mobility issues. Regarding the elderly who have returned their licenses in the top row, the national average age for returning a license is now 78.2 years old. The proportion of the population aged 78 or older is especially high in Town A and even City C. In these areas, there are issues such as how to adjust the drivers of mobility for the elderly. In addition, as for the child-rearing class, which is clearly visible in Town A, the rate of children using their own cars while commuting to school is very high at 19.3%. It is assumed that the child-rearing class is burdened by the transportation of children to and from school. Finally, if we look at the ratio of the number of tourists and the population of municipalities, it is a coincidence, but in both Town A, City B, and City C, the number of tourists flows into the residents quite a lot. It is 2.3 times nationwide, but in areas where there are many tourists, the demand of both residents and tourists varies greatly, so there may be issues such as how to balance the demand of tourists.

Page 5 of Handout 2 is supplementary data. The vertical axis is the population density, and the horizontal axis is the dependency ratio of public transportation during commuting to work and school. Naturally, in the area with low population density, which is closer to the lower left, the dependency ratio of public transportation is also low. In other words, the movement of private cars supports the movement of the area. The situation of relying on private cars for the transportation of elderly people and child-rearing people after returning their licenses, which is the issue I mentioned earlier, is expected to become serious.

Please refer to page 6 of Appendix 2. Against this background, it has been discussed in the Mobility Working Group in the past that it is necessary to capture demand-side mobility, including potential ones, as a regional project. As for the types of mobility demand that must be captured, I think it is necessary to capture latent demand, including not only apparent demand but also demand for mobility that people want to move more, or demand for mobility that has a positive impact on the Digital Agency if they move without realizing it.

There are two types of latent demand. Functional latent demand is the demand to go shopping or to satisfy the demand for moving efficiently. Latent demand that creates a connection is described as "behavior that becomes more ideal in connection with the community," but it is something that makes you feel happy to act together in connection with the community, and it is characterized by the subject being the whole local residents and the unit of the community. When we capture not only these apparent demand but also latent demand, the current mobility data does not capture such latent demand. In order to capture latent demand, we need to capture how much people are putting up with it, how much they want to move, and what kind of impact it has through quantitative questionnaires, interviews, workshops, etc.

Some of the results are introduced on page 7 of Appendix 2. This is the data from Town A, a sparsely populated area in the mid-mountainous region. We conducted a survey of 1433 people, taking into account their volume and household composition. The results are expressed as a percentage of the gap between the level of desired frequency of movement for living purposes and leisure time and the level of actual movement. We can see that there is a gap between the level of actual movement frequency and the level of desired movement frequency. For example, (1) in the case of shopping for daily necessities, we can see that the actual demand does not reach the desired level for all households, which is about 10% to 20%. In addition, for shopping for leisure travel and non-daily necessities, we can see that there is potential demand of more than 50%, such as 60% to 70% depending on the generation. On the other hand, we can see that we want to reduce the frequency of movement to support commuting to work and school for children's households. In this way, we can see that there is potential demand in the case of Town A, a sparsely populated area in the mid-mountainous region.

Page 8 of Appendix 2 summarizes the composition of providers of transportation services in response to demand in sparsely populated areas in hilly and mountainous areas. It can be seen that the providers of transportation services are dispersed for the main purposes of transportation listed on the left. It can be seen that not only the operators but also the owners of vehicles and drivers are dispersed. It is not an argument that it can be consolidated as it is because the legal systems on which it is based are different, but as a means of transportation, residents have to use various services differently, and from the viewpoint of the suppliers of vehicles and drivers, I think services tend to be inefficient.

From now on, I would like to consider the role and function of transportation trading companies based on the background. On Page 10 of Appendix 2, I defined transportation trading companies based on this background. As we have looked back on the supply-side issues on the left, the number of users of public transportation is decreasing every year, the services are dispersed and it is difficult for users to know which service to use, and there is no consistent system, so the organizations that provide each service are independent. On the other hand, if we move to the demand side on the right, there is potential demand due to the poor convenience of public transportation, the fact that it is difficult to ask families to pick up and drop off children and they have given up on participating in health events for the elderly, and the fact that they want to enrich after-school education for children but have problems with picking up and dropping off children. As a transportation trading company, I think it is necessary to link supply and demand. What is described in the lower part of page 10 of Handout 2 is a draft definition of a transportation trading company. "It refers to an entity that proposes the creation and consolidation of regional mobility demand and the design of optimal mobility services in an integrated manner and encourages related businesses to implement them. At the same time, the Government will investigate the mobility demand necessary for this purpose, plan new mobility demand, and develop systems and applications commonly required for the efficiency of mobility services. This entity is defined as a transportation trading company. Of particular importance is the creation and consolidation of demand for mobility. "Although there have been several approaches to restructuring the supply side, I believe that it is important to create and consolidate mobile demand as a trading company function."

Let me introduce one example on page 11 of Handout 2. This is the example of Mr. Tajima of Kurashi no Kotsu, Co., Ltd., which was introduced at the 6th Mobility Working Group. In the example in Mitoyo City, Mr. Tajima of Kurashi no Kotsu claims to be a transportation trading company, but for the children I mentioned earlier, we created a place for inquiry learning for elementary, junior high and high school students called "Mitoyo Inquiry Club," and we believe that the independent behavior of children is ensured by mobi's services. For the elderly, we provide a service called "Magokoro Support," which is close to life, and it is an example that contributes to increasing the frequency of moving and going out.

Page 12 of Handout 2 is an example of an on-demand bus called "Genki Bus" that runs to Tamaki-cho, Mie. As you can see in this graph, it shows the total number of people participating in the outpatient long-term care prevention project at business establishments. The on-demand bus carries people heading for the destination long-term care prevention business establishment, and the operation body is the Council of Social Welfare. In addition, the Council of Social Welfare also carries out the long-term care prevention project at the destination, and the purpose and means of transportation are carried out together, which is an example of contributing to an increase in the number of seniors going out. In addition, in the actual situation of transportation in this area, it is confirmed by data that local residents gather at the same event at the same timing and get along well. In addition, the reduction effect of medical expenses by this is also an example obtained by health insurance claim data.

Please refer to page 13 of Appendix 2. While referring to these examples, we have been thinking about how we should build the transportation trading company function in the future with a sense of step. The important point is how to build cooperative relations with residents and transportation business operators. To that end, I think it is important to raise social acceptance in Steps 1 and 2.

In Step 1, we will clarify the extent of demand, including potential demand, in the region, and in Step 2, based on that demand, we will create a set of means of transportation with the aim of realizing results, even if they are small, and widely publicize them. As a result, local stakeholders will recognize that there are new businesses and markets there, and social acceptability will increase. In this situation, I think it is necessary to further expand the scope in Step 3, collect comprehensive business data, and prepare the ground for discussing the efficiency of mobile services throughout the region.

Starting from page 14 of Handout 2, we provide a specific image. We visualize and share the target level of daily and leisure demand that we introduced earlier in the case of Town A. We clarify how much potential demand there is like the percentage shown on the demand side. Please refer to page 15 of Handout 2. In Step 2, we provide a set of measures to meet those demands or create new demands to meet the original purpose, including the purpose and means of transportation, and narrow down the results to this area. We believe that we can expect that the social acceptability of market creation will increase by preparing the ground for sharing the feeling that we were able to actually create movement demand in the new business in the region.

Finally, please refer to page 16 of Handout 2. In Step 3, we will collect demand data using a common application, etc., with a slightly wider range of demand than before. I think it would be good to recognize demand data as the total demand of the region, deliberate on reasonable services to meet the demand on the supply side, and consider how to efficiently meet the demand as a whole region to form an ecosystem.

Page 17 of Appendix 2 is a supplement, but in the process of narrowing down services at the stage of Step 2, it is considered to use regional well-being indicators, etc. As a regional transportation trading company, we believe that it is necessary to consider the creation of travel demand while considering how the happiness of the region and the demand created by it are related by utilizing such well-being indicators, etc.

Finally, on page 18 of Handout 2, we describe what kind of player is suitable as the leader of such a transportation trading company, and its expertise and relationship with the player as a draft. In conclusion, I believe that the requirements required for each of the previous steps will differ. In step 1, visualizing transportation demand, players who can determine what kind of demand should be considered as potential demand are required. In step 2, it is assumed that measures will be taken across divisions in charge of local governments and across services, but players who can unite them and work with local stakeholders are required. Finally, in step 3, the ability to lead the design of common applications and negotiations on the supply side is required. As the requirements required for players in each step change, I believe that concrete discussions will be necessary in the future on whether players should be expanded step by step or whether the ecosystem should be expanded. As the leader of a transportation trading company, I submitted a draft of the requirements together with the steps. Although it was quick, I introduced the draft under the theme of "How a transportation trading company should be." Thank you very much.

Director Asayama: Thank you for Next, I would like to ask you to talk about "how the common foundation that supports the functions of transportation trading companies should be." As an example of solving social issues using mobility, Mr. Yumikake, Executive Officer of MONET Technologies Co., Ltd., will explain.

Mr. Yumikake: I would like to respond to a question from Koda , today I would like to introduce about five examples of solutions to social issues using mobility, mainly those that have been implemented.

First of all, I would like to explain about MONET Technologies Co., Ltd., which was established as a joint venture between SoftBank Corp. and TOYOTA MOTOR CORPORATION, and has invested in other domestic automobile manufacturers.

The mission is described on page 2 of Appendix 4. As a company formed by these shareholders, the mission is to "enrich people's lives through mobility services," and the vision is to "draw out the new power of mobility from the aspect of technology, solve social issues and create new value."

On Page 3 of Handout 4, we list the issues we want to solve. We are using our technology to meet the demand for mobility and to address issues such as shopping refugees and doctor shortages.

MONET Technologies Co., Ltd. is divided into three business areas: MaaS, data business, and autonomous driving MaaS. MaaS is a term that combines "mobility" and "services," and has already been implemented in 48 cases of on-demand mobility, 27 cases of administrative MaaS, and 21 cases of medical MaaS. It will increase at the end of this fiscal year, and will be implemented in about 100 local governments and used by residents. There are 100 local governments out of about 1700 nationwide, so I believe there are still many customers in Japan. I am talking about approaching the data business area with technology, but I believe that data business can be useful by using digital. As described in this case example, we are using data to understand the movement demand, and at the same time, we are simulating the effects, movement of people, and reduction of time before introducing the business. In addition, after starting the business, we can check the progress daily with data and improve the business. Finally, in the autonomous driving MaaS area, we believe that MaaS can solve the problems required for autonomous driving, rather than aiming to drive a car without a driver. There are some problems that can be solved by autonomous driving, but we believe that they will not be solved fundamentally, so we are solving them by combining autonomous driving and MaaS.

As shown on page 5 of Handout 4, I think the demand includes hospital visits, commuting to work and school, shopping and sightseeing, and picking up and dropping off children. I will introduce about five cases later. The demand itself is latent, but there are social issues before the demand. There are only two listed here, but there are many issues in local areas. For example, there are issues such as difficulty in maintaining route buses and issues of non-medical districts. With these issues as the demand, we are providing on-demand mobility and systems as medical and administrative MaaS. As described at the bottom, we are also working on how to provide services in response to the demand, how to design them, preparation of dispatch management systems and cars, human resources development necessary for business, and data services.

The point that should not be overlooked is whether the demand that has emerged is correct. As you can see here, there are 557 districts in Japan that do not have a doctor. The demand for bringing a doctor has emerged, but in response to this, our company does not simply address the issue of not having a doctor, but takes an approach from the aspect of being able to see a doctor on a daily basis or when needed easily. I will explain in the case study that it is not necessarily just bringing a doctor.

I will explain examples of on-demand services for hospital visits and shopping using the example of Tomioka City in Gunma prefecture. The entire area of Tomioka City, which used to be served by trunk buses, community buses, and on-demand services, has been made on-demand. When 446 virtual bus stops were built in the city, the movement of people increased. After the introduction, nearly twice as many people moved as before the introduction. As a result, students who had not used on-demand services in the past began to move. And for the elderly, the number of shopping trips and the amount of shopping increased. These are among the effects of on-demand services.

Next, I would like to introduce the example of Toba city, Mie prefecture. We conducted "medical MaaS" and "transportation service". "Medical MaaS" means transfer of clinics, and we visit patients' homes or nearby with nurses, and doctors provide online medical care from clinics. This allows a certain level of medical care to be provided online even in areas where doctors cannot be taken. It is difficult for elderly people to provide online medical care using computers, and only medical interviews can be done. However, by preparing a car, we can obtain vital data and conduct medical interviews with the support of nurses. At the same time, for medical care that cannot be done online, we also take patients to hospitals. We do not take all patients with us, but we treat patients online and ask patients who need to come to the hospital to come to the hospital.

Next, I would like to introduce an example from Suooshima-cho, Yamaguchi prefecture. Here, we are working on "medical MaaS" and "administrative MaaS." In "administrative MaaS," the government office counter is located in the car and residents can follow the procedures. Some local governments are working to provide fixed counters at shopping malls on weekends and other places, but we are providing a service that brings the administration closer to the residents by car. For example, we are providing My Number Card registration, health counseling, and smartphone classes aimed at eliminating the digital divide. Medical and administrative services are aimed at completely different people, but the reason why we are working at the same time is the effective use of assets. Considering the cost-effectiveness and investment effect, there were discussions that we could not raise the operation rate because just buying a car and using it for medical care would not be used on some days. In our car, the internal shape can be changed, so different types of services can be provided at once, so we are working on local governments.

Next, I would like to introduce an example from Sakaimachi, Ibaragi Prefecture. It looks like a medical MaaS, but it provides ophthalmic examinations to residents before they get sick. If daily transportation becomes inconvenient, it becomes obvious that they will not be able to go to the examination before their symptoms appear. It is not only to increase the examination rate, which has been worked on by the local government from the beginning, but by taking the examination, it becomes possible to deal with the disease before it develops. By detecting the disease before it develops, it is possible to reduce the burden of medical expenses and physical burden compared to when the disease actually develops.

The last example is human resource development in Niihama City, Ehime Prefecture. When working on MaaS services, it is necessary to have an agreement and a common understanding not only between the government and our company, but also among local stakeholders. In fiscal 2023, we utilized the human resource development project of the Ministry of Land, Infrastructure, Transport and Tourism, and held a workshop with the government and residents, as well as transport operators and medical personnel if it was on-demand, to recognize issues and consider solutions. This was also a valuable opportunity to foster a common understanding and agree on a direction by looking at the visualized data. Since local governments cannot start a project right away when they think of it, as described in the lower right, if we can put it into a roadmap based on the common understanding, we can eventually speed up the introduction of the project in the future. To that end, we would like to work more actively.

On page 11 of Handout 4, I will explain the "Proof of Value of MaaS," which is our challenge and what we are working on. As I mentioned earlier, we are focusing on the outcomes of investments by local governments and administrations, which are the majority of our customers. As described here, we are also looking at operational design data on what kind of cars will be run in what kind of areas to see the effects as value by the amount invested. On the demand side, we can also look at migration trends and performance data by resident attributes. In the end, as described at the bottom, we are discussing based on the same data in order to obtain a common understanding that the business-improvement effects did not go as expected when it was introduced, but it turned out as expected. At the same time, economic spillover effects such as social cost reduction such as reduction of accidents and CO2 reduction are expected. As for the reduction of medical expenses I mentioned earlier in the Sakaimachi example, we need to take time to see the effects, so we are working hard so that we can grasp not only the effects of a single year, but also the social cost reduction and economic effects in terms of investment return and cost effectiveness.

On page 12 of Appendix 4, we describe our findings and issues through our efforts, and I will explain two main points. In terms of MaaS value certification, we would like to visualize the effects that can be obtained by introducing the service. For that purpose, we believe that value certification can be generalized by widely sharing not only data from SOFTBANK CORP. or TOYOTA MOTOR CORPORATION but also other utilization data.

I did not introduce any examples, but we would like to promote autonomous MaaS. As I mentioned earlier, the current demand for mobility is driven by the movement of people. However, we believe there is a way to solve it without moving. As described below, we would like to make the movement of services autonomous. As mentioned in the talk about autonomous driving, the problem of driver shortage is becoming obvious. We can solve it by moving services, but we are worried that there is a possibility that there will be no drivers to carry the services. As autonomous MaaS spreads, we would like to support the movement of people and move services at the same time. This is the introduction and sharing from MONET Technologies Co., Ltd. Thank you very much.

Director Asayama: Thank you for . Next, Mr. Hatakeyama Hakuhodo Co., Ltd., the representative of the Mobility Community of the digitalisation Horizontal Expansion Promotion Council, will explain "how the common foundation that supports the functions of transportation trading companies should be".

Mr. Hatakeyama: Mr. Horiuchi and people from other related ministries and agencies. It has been five or six years since then.

This is not an activity by Asahimachi for Asahimachi. Starting from Asahimachi, we hope to be useful to people in various regions, including the mayor of Asahimachi. We have actually started to practice it in various cities and towns. Please understand that Asahimachi is a representative example of such cities and towns.

If you look at the center of Page 2 of Handout 4, you will see the words "Nokkaru" and "LoCoPi." As some of you may have heard, this is a public ride-sharing service called "Nokkaru," which is the first certified public ride-sharing service in the country for private paid passenger transportation in cooperation with business operators. LoCoPi, which is described on the right, was launched last year. It is a life-style service for all generations, in which all generations can use My Number Card to earn points and use local currency, and can be used by children and the elderly. Today, I will explain how Nokkaru and LoCoPi function as actual services of a transportation trading company.

On the left side of page 2 of Handout 4, on the supply side, there is Nokkal, which is not only engaged in public ride-sharing, but also easily operates a wide range of public transportation from community buses to demand buses with the same mechanism. On the right side, on the demand side, which is equivalent to the potential demand that has been talked about today, LoCoPi, which uses My Number, functions by actually using points and paying them as a local currency for various generations, from commerce and shopping for the working generation, to children's education, hospitals, centenarian gymnastics for the elderly and entertainment facilities. The overall picture is that we create both supply and demand by going back and forth, thinking, "If there is such potential demand, I think we can move in this way." We are working on this by creating a system in which the public, private, and local communities are united, with the government, Hakuhodo Co., Ltd., local residents, and the Regional Revitalization Cooperation Team. I will explain this from the supply side by dividing it into three and including examples.

First, the supply-side. At Hakuhodo, we design the mechanism while looking at the overall model, but on the supply-side, there are some points that our knowledge alone cannot reach. Therefore, since last year, we have been working together with Itsmosmile Co., Ltd. and Will Smart Co., Ltd., not only to envision digital public goods, but also to create specifications together with people who are actually using them in the field. Regarding what functions are required in the common application that Mr. Kato talked about, I will omit the details of the specifications and tell you only the points.

As you can see on page 6 of Handout 4, we have actually categorized the forms of transportation services. We have sorted out the range of services provided by various companies, which are provided by our company and two other companies. In fact, regarding the common points among them, we are not simply using a single system, but we are also discussing cooperation with services provided by individual companies and transportation trading companies.
Page 8 of Handout 4 shows the specific organization of services and functions. Each company has done various things, but I found out that there are many common parts that are yellow in the handout.

Please refer to page 9 of Handout 4. Regarding digital public goods, which is one of the topics on today's agenda, it can be seen that the functions necessary for regional transportation operations are common. I think it is important to reorganize the entire regional transportation system, including demand. Therefore, the supply side is discussing how it can be linked with the transportation trading company function, in addition to providing it to various local governments at the lowest possible price.

The second point is about supply and demand matching. We are practicing this not only in Asahimachi but also in various regions. I would like to explain how we are using the data on private car travel for traffic restructuring because it is the data that shows the most needs for transportation. We match the demand and supply by comparing the data of private car driving with the data of public transportation, and examine the necessary services as a result. Specific examples are shown on page 12 of Appendix 4. The green areas on this map are where we are currently considering private car traffic. We mapped in red how the actual private cars were traveling, and we could see how they were moving to the residents. The existing public transport is mapped in blue. The red and blue colors are the transportation that actually supports our lives, but we have found that there is a traffic vacuum even though there are sufficient needs for transportation here. We are designing a new green bus stop based on the transportation needs including this one. At present, we are using data from an insurance company's telematics insurance, but in the future, we would like to co-create it by multiplying actual vehicle movement needs and public transportation by multiplying data together with automobile manufacturers. Please refer to page 13 of Appendix 4. For this reason, the three companies I mentioned earlier are discussing whether vehicle data, rather than human data, can be handled more openly as a public good.

The third point is about the demand-side. I will explain how to get the demand-side data from children to the elderly. On page 15 of Handout 4, I will explain LoCoPi, a service that utilizes issue, which was introduced in Asahimachi using digital My Number Card Kin and others. This is a service that creates local points and local currency by writing the service in My Number Card itself. Actual specific examples are described on page 16 of Handout 4. By touching the My Number Card to the machine, it is used to notify children when they come to and from school and when they get on and off the school bus. In addition, by sending a notice to the elderly that they came to the 100 Year Old Gymnastics, it not only improves the elderly's willingness to participate but also serves as a watching notice to the working generation. The right side is an example that can be used in public facilities and various general facilities. In Asahimachi, this fiscal year, out of about 130 stores, 55 stores allow payment by My Number Card.

The important point is that it is possible to collect demand data as shown on page 17 of Appendix 4. The initial hurdle was high, but the My Number Card will be something that all citizens carry with them, just like health insurance cards and driver's licenses. Asahimachi is one step ahead of those activities. When you actually go out, you touch the card and go to various places, so you can see "where, who is using it, and for what purpose." As Mr. Katoh mentioned, there was a suggestion about how to collect data, but please understand that Asahimachi is using My Number Card. Furthermore, as you mentioned about potential demand for transportation, we are building a transportation network according to the purpose.

Please refer to page 18 of Handout 4. I think this point is also important, but the important point in obtaining information is whether you really want to use My Number Card. I would appreciate it if you could see My Number Card on site, but people from children to the elderly really use My Number Card. One of the points is the sound of LoCoPi. When you use it, LoCoPi and touch sound will sound, but I think it is important to create a system that makes you want to use it naturally like this. In addition, as you mentioned about creating a community, by creating a ranking by region and district, we are making efforts to motivate people in the community to use it, like competing at the sports festival in each district that has existed for a long time. Local residents enjoy participating in nature, and while working in the district, as a result, it is a data collection for the government side and transportation trading company, and it is the basis for thinking about the transportation network.

Lastly, I explained what we are actually doing in Asahimachi in accordance with the purpose of today's presentation. I would like to reiterate that we are conducting local transportation through My Number Card in accordance with the vitality of residents in terms of demand and potential demand. Behind the scenes, we are reorganizing transportation in one package and matching public, private, and local transportation. Do you have any comments from Mr. Horiuchi?

Mr. Horiuchi: I would like to add one point. In the middle of page 19 of Handout 4, I am writing in the form of town planning by joint creation of the public, private and local communities. As Mr. Hatakeyama mentioned, I think it is very important to re-draw the traffic on the left based on the needs from the demand side on the right rather than the supply side on the left. At that time, I think it is very important to design not only the traffic but also the demand side on the right, including commerce, children, hospitals, health care, etc., what kind of issues and needs there are for each theme, and what kind of planning and form will make it easier for everyone to participate by digging out the demands and needs one step deeper. I think it is very important to redesign not only the traffic but also the whole.

Mr. Hatakeyama: Mr. Horiuchi That's all from our company.

Director Asayama: Thank you for . I understand that you will be able to join us for an exchange of views at Y's Moth Mile Co., Ltd., which is working with Hakuhodo Co., Ltd., but I understand that Mr. Hatakeyama has plans after this. If you have any questions, I would like to ask you.

Mr. Hatakeyama: Mr. Horiuchi is still in the meeting, so I will answer there.

Director Asayama: Thank you for Now, Mr. Director-General Murakami of Digital Agency, please explain about digital public goods and their horizontal development.

Murakami Director-General: Digital Kouzai.
Please refer to page 2 of Appendix 5. We start with a review of the transition from an economy where demand aligns with supply to one where supply aligns with demand during phases of population growth and decline. For example, passengers are waiting at bus stops for buses that come according to the timetable, a situation where the demand matches the circumstances of the supply side. On the other hand, when a pick-up car picks up a passenger at the place where the passenger is, it can be said that the supply matches the circumstance of the demand side. In addition, it is a situation that the demand side of the employee adjusts the labor post to the situation of the supply side that they do not hire unless they follow the employment rule of coming to work at eight thirty. However, nowadays, even if you are told that everyone should come to work at eight thirty, it is said that you will not join such a company. There was a time when "if you want something, please come to the store to buy it," but now it is common for products to be delivered to consumers' homes. In the Showa era, public education aimed to gather students and provide them with an equal and equal education. However, today, as the number of teachers is decreasing, it is also necessary to respond to diverse learning. It has become essential for teachers to devise ways to meet the needs of children, such as introducing a teacher system, strengthening exploratory learning, and utilizing online education. At a time when both the population and the number of doctors were increasing, the trend of going to a primary care doctor and going to a secondary hospital when necessary was growing along with the population growth, and the supply side was struggling with various patient needs. Today, however, secondary hospitals are gradually becoming more distant, the number of medical institutions providing artificial dialysis is decreasing from the neighborhood, and the number of family doctors is decreasing one by one. This has led to a situation where patients, i.e. the demand, have to actively look for medical institutions. From the perspective of logistics, distribution used to be conducted after each sales contract based on instructions from the supplier. However, we are now entering an era in which distribution moves ahead of commercial distribution in line with demand trends and distribution efficiency even before a contract is concluded. Administrative services are also changing, from the age of going to the city hall to do the procedures, to the age of receiving notifications and doing the procedures automatically. Both are demand-oriented moves. What I would like to point out here is that, as explained earlier by MONET Technologies Co., Ltd., the moving traffic line, on-demand and online are actually one set. If there is transportation, you can go there, but if there is no transportation, it will be necessary to substitute online. It's happening in the same way in health care and education. In order to provide medical care to a limited number of doctors and limited numbers of doctors in accordance with the situation on the demand side, we must deliver services that are optimized for each individual by combining online services in addition to securing transportation. From this perspective, the mobility issue is not only a mobility issue, but also an issue that crosses all other fields such as shopping, education, and medical care.

Please refer to page 3 of Appendix 5. I believe that the important reason why NOCAL made a good start as a ride-sharing company was that a new supply service was planned in conjunction with the legitimate reason on the demand side, such as the need for a new means of transportation for the demand for after-school education called "Minmanabi" and "Centenary Gymnastics."

Please refer to page 4 of Appendix 5. As many people have mentioned, as demand is declining, it is necessary to consider not only the reorganization of the supply side, but also the reorganization of supply and demand in an integrated manner. The function of a transportation trading company will be the hub for this. I am not sure what kind of form it will take yet, so I dare to describe it as "the' function' of a transportation trading company." Whether it will have a transportation trading company function within the local government or whether an agent with a transportation trading company function will emerge outside the local government, there are some parts in the future, but for example, when I look at the explanation of MONET Technologies Co., Ltd. and the efforts of Hakuhodo Co., Ltd., I think that it is precisely the case that various efforts have already been made on the transportation trading company function.

In the latter half, I would like to explain about the "common infrastructure," which refers to the arrangement and coordination of vehicle dispatch and sharing of various data. To put it bluntly, it is about the inefficiency of taxis, buses, and others using different dispatch apps. I will discuss it later as a "digital public good," but I would like to add the point that dispatch apps are one of the important items that transportation trading companies should take the initiative in developing across service types to the discussion of transportation trading company functions, along with the integrated design of supply and demand.

Please refer to page 5 of Appendix 5. Including the launch of the robotaxi business in central Tokyo in 2027, I think there will be a big trend as shown on the right side of page 5 of Handout 5. We are also considering commercialization and services utilizing autonomous vehicles. At present, there are six tiers: infrastructure, hardware, software, data, rules, and services. First there is road infrastructure, then there is the automotive industry, which has vehicles. This is an important industry that drives the Japanese economy. Within the automobile industry, a certain company is said to have a 60% share of the in-vehicle OS market, and the information service industry has also formed a layer. Also, from the viewpoint of transportation services, there is a local service industry with data, and in addition, there is a competent ministry that regulates the rules of service. In the local service industry, various relationships are required, such as communication with the Transport Bureau, coordination with the Transport Council, and cooperation with local taxi associations. If we were to actually develop a robotaxi-like business, we would need to coordinate and interact with all six of these sectors. In the case of Japan, each of the six classes has its own order and circumstances. This would be fine in a country where, if the Government of Japan were to give instructions to the six classes, it would be realized. The challenge is how to coordinate cooperation to launch new services in an integrated manner. It is necessary to create a virtuous cycle of cooperation and competition in six fields. I think that the transport trading company function needs to be included in this cooperative area.

Please look at the right-hand side of page 5 in Handout 5. Digital public goods and Digital Public Infrastructure are divided into gray and blue. Digital Public Infrastructure is the same as ordinary public goods. In the digital world, it is proprietary and better to be actively developed by the public side, such as certification infrastructure like My Number Card and communication capacities such as Government Cloud. Of course, even in robotaxis and so on, there are parts that depend on identity verification and other Digital Public Infrastructure, such as ride management and reservation management. It is actually used in Nokkal.

To put it bluntly, what we have in mind as a digital public good for Digital Public Infrastructure is a world like a ride-hailing reservation management app. Until now, some large markets have been formed as MaaS, and among them, it refers to the basic functions.

Please refer to page 6 of Appendix 5. For example, there was a story that Hakuhodo Co., Ltd. is doing business together with Will Smart Co., Ltd. and Itsmosmile Co., Ltd. I think Itsmos Mile Co., Ltd., which is actually used in Kamiyama-cho, is close to the third example from the left. Y's Moth Mile Co., Ltd., which was originally a social welfare corporation, had a ride reservation application for social welfare corporation's transportation. If the D, E, F, and G functions are related to the dispatch reservation management and other functions, Itsmos Mile Co., Ltd. also has the C function for online nursing care and the B function for nursing care reservation. On the other hand, Will Smart Co., Ltd. is, for example, the fourth. The company originally provided many business solutions for transportation companies, and it also has a general toC car allocation reservation management system, but it also has various functions such as business asset management software for each taxi company and a driver work management system. In fact, in any local government in Japan, the service that can manage the reservation of car allocation in toC, that is, the part of common functions such as D, E, F and G, is necessary in any case. So this time, at the briefing of Regional Revitalization issue Kin, I myself talked about the "3 million Yen Club" to the local residents. The Ministry of Land, Infrastructure, Transport and Tourism is also involved, but this fall, some people wanted to do analog ride-sharing because they could not buy some software at high prices. However, if you try to introduce solid software that handles personal information, it costs about 30 million yen per year just for the D, E, F, and G functions. However, 3 million yen is the limit for local governments with no financial capacity. If 10 local governments commit at the same time and share use and joint procurement, it will be 3 million yen x 10 local governments, which should be established as a market. In reality, however, there is no guarantee that the 10 local governments will be able to cooperate in procurement, so while local governments with sufficient funds to purchase even at 30 million yen will be able to introduce the system, local governments with no funds will be unable to do so. As a result, MaaS vendors will compete with each other for local governments that can introduce them, and competition will begin in the direction of actively adding and introducing not only the cooperative areas from E to G but also the functions of the competitive areas from A to C. From the point of view that we should aim for a world where ride-hailing apps can be used even on small remote islands, I think we should first cut out the area of cooperation among the 3 million clubs and work together. In addition, in terms of what to add as business solutions and what to add for social welfare corporations, I think it would be good for each business to compete with each other. As for the harmonization efforts to clarify the areas of cooperation, we are currently gathering people from about 300 companies within the framework of the digitalisation Horizontal Expansion Promotion Council, and the private sector is taking the lead in discussions on what falls under D to G, with mobility as one of the fields. When government offices take the lead in creating a definition of the area of cooperation, various problems of opacity arise, so the private sector takes the lead. For the cooperative areas specified in the guidelines, for example, we are currently considering a scheme in which issue Gold's subsidy rates are raised, or the central government or the public sector temporarily purchases ATMs for financially weak local governments and provides them at low prices to encourage their widespread use, and then sells them back to vendors when the market matures.

Please refer to page 7 of Appendix 5. In fact, within the framework of regional revitalization, we have been discussing the monthly, weekly, and daily traffic routes. The discussion of the mobility hub has been going on for some time, and I learned about it when I went to Kamiyama, but the weekly traffic route has been particularly in crisis recently. In every city and town, there are monthly traffic routes such as "going to the mall once a month," "going to the prefectural capital," and "going to the movie theater." The supply side has managed to maintain this movement on an industrial and business basis. On the other hand, the daily traffic route is necessary for commuting to work, school, and day care, and must be maintained in close relationship with the local community. If the traffic route collapses every day, the outflow of population will accelerate rapidly in that village. Before that, the line of defense is to maintain and secure the weekly traffic route, for example, whether or not it is possible to purchase daily goods in that area. For example, disposable diapers for the elderly are the first products to disappear from convenience stores and other stores because of their small volume and low profit margin. However, there should be no areas where disposable diapers for the elderly are unnecessary. How to maintain this will be a challenge. In underpopulated areas, there are cases where home delivery services do not reach the end, and the problem is becoming more serious.

Please refer to page 8 of Appendix 5. This is a bird' s-eye view of regional revitalization as a whole. The fundamental issue here is the maintenance of distribution. According to a person from the head office of a convenience store franchise chain, in the end, whether or not the distribution flow can be maintained is an important factor in whether or not the retail at the end can be maintained. I think that it is difficult for a transportation trading company to have the power to control the entire hub formation without the involvement of the town office itself. However, if such a hub formation is not realized, the company will lose its role as a flag bearer to protect the flow line once a week and every day. I hope that this role will be important for the transportation trading company function.

Please take a look at page 9 of Handout 5. This is an abstract summary of a part of the explanatory material for investors that a self-driving company in a certain country is considering the road to commercialization of self-driving. They also assume that the actual commercialization will not be completed by self-driving, but will start from the world of manned driving first. The first thing that will put a digitalisation hook on the analog processing world of manned driving is regarded as a ride-hailing app or a booking app. And next, they explain the flow of moving from manned driving to manned driving with self-driving assist and then to unmanned driving. For example, the process of utilizing AI in route search, almost automating driving, and eventually moving to full self-driving. In light of this flow, it is important to organize existing ride-hailing apps and vehicle-driving apps as cooperative areas and to keep prices as low as possible, so that a system that can be provided to many local governments can be established. This is not limited to densely populated areas such as urban areas where commercialization can be done only in private sector, but also in areas where commercialization is difficult due to low population densities. I hope we can deepen our discussions on this point with you. That's all.

Director Asayama: Thank you for Now, I would like to begin the exchange of views. First of all, I would like to introduce the opinions received from the members who are absent today.
First of all, Mr. Okamoto, we have received opinions unique to electric power companies. Since electric power companies are rooted in local communities where people live, they can not only match transportation, but also play a role as a transportation trading company for various services. In addition, energy data can be connected to human behavior observation. From this perspective, we have received opinions that we would like to help in various ways. In addition, we have received opinions that we would like to provide support in a way that makes the most of roadside infrastructure when road-vehicle cooperation is required.

Next, Mr. Saito. You are in favor of the function of a transportation trading company. In the future, it will be necessary to consider the function of a transportation trading company from the perspective of a digital infrastructure that cooperates with public-interest private services. In doing so, we have received your opinion that it is necessary to increase the utilization rate and optimize the transportation system in order to maximize the investment effect of the transportation trading company. In order to do so, it is important to correctly understand the true purpose and necessary services. We have received your opinion that it is necessary to proceed with the social implementation of the transportation system while envisioning the future image. In addition, we have received about four proposals. The first is that we should consider the social implementation of transportation services that cooperate with not only transportation services but also microservices for residents and tourists. The second is that we should construct a Architecture that aims to maximize the investment effect and reduce social costs and optimize the comprehensive management and utilization of physical transportation infrastructure when considering the foundation for providing such services. The third is that although systems will be built in each Digital Agency, it is necessary to aim for standardization of services so that operation and maintenance can be shared and standardized. The fourth is that the region as a whole should play a central role in promoting the project.

Finally, Mr. Suzuki expressed his opinion that efficiency would be improved by sharing the functions of transportation trading companies rather than developing them individually for each local government, but that he would like to deepen discussions on whether it would be better for the private sector or public organizations to take charge. He also expressed his opinion that under the current legal system, it may be limited to taxis and buses, and that public shuttle buses for nursing care facilities, schools and hospitals should also be included in this scheme.

In that case, I would like to proceed with the exchange of views. In this round of discussions, I believe the focus will be on digital public goods and collaborative areas, but in the round before last, there was a view that we should also discuss data-security and rule-making, which are common infrastructure. This time, Will Smart Co., Ltd. and Itsmos Mile Co., Ltd. are also present as observers, so I would like to hear your views from the perspective that we had in the round before last. In addition, since today's discussion is deeply related to local living areas, the Land Policy Bureau of the Ministry of Land, Infrastructure, Transport and Tourism is also present. In my capacity as an observer, I would like to hear your views if you have any. In that case, due to time constraints, I would like to hear your views within three minutes first. Thank you, Mr. Koda.

Member Koda: Thank you , thank you for your valuable comments and suggestions. In connection with Digital Agency's presentation, I would like to ask you some comments and questions.

First of all, I saw an example of a public bus being used to travel between a nursery school, a kindergarten, and an elementary school in a town that is not in a hilly and mountainous area. This public bus takes out a card for elementary schools and picks up and drops off students at a certain time. Considering it as a digital public good, I think it would be a good idea to generalize the current public bus to private use or to a place where certain use needs are concentrated.

Also, I would like to talk about pages 3 and 5 of Handout 2. I believe that there are more travel times and locations than can be covered by on-demand services, such as picking up and dropping off children at each home, commuting to work or school, and after-school lessons. Therefore, I believe that if the private sector creates a mechanism to solve the problem through the relaxation of laws and regulations, such as securing substitute drivers in small communities for after-school lessons and school children, it may lead to the development of demand and the solution of the problem.

I agree with the importance of uncovering potential demand on pages 5 and 8 of Handout 2. Local residents sometimes participate in local events such as child care and medical consultation meetings together with local governments and companies across the country, but many people say they cannot participate because they do not have transportation. Therefore, I thought that it is important for players to collaborate with each other and not for one company to do both when matching transportation.

I have a question for Mr. Yumikake of MONET Technologies Co., Ltd. regarding the hiring and training of drivers and human resources to meet demand. I think he is anticipating the adoption of autonomous driving in the long run, but how is he currently discovering and hiring human resources? In addition, you said you would not see the effect in a single fiscal year, but I am worried about how many fiscal years you are seeing it.

Also, I have one request. We are currently working in Mie Prefecture to promote ties in the Toba City area, and if you don't mind, we would like to have some individual ties. Since we are working to create demand, we would appreciate the opportunity to discuss multi-purpose travel as well as medical care.

Director Asayama: Thank you for . There was a talk about traffic-related regulations, but since it is a part related to the comprehensive policy of the Ministry of Land, Infrastructure, Transport and Tourism, I would appreciate a comment from a person in charge of the Comprehensive Policy Bureau of the Ministry of Land, Infrastructure, Transport and Tourism.

Mr. Tsuchida (Mobility Service Promotion Division, Policy Bureau, Ministry of Land, Infrastructure, Transport and Tourism): traffic-related regulations, do you mean the generalization of school buses to public buses?

Member Koda: Thank you In addition to that, there will be a question about the direction of legal regulations and deregulation related to ride-sharing among residents.

Mr. Tsuchida (Mobility Service Promotion Division, Policy Bureau, Ministry of Land, Infrastructure, Transport and Tourism): . Although there are restrictions on subsidies from ministries and agencies for means of transportation that include various financial resources, such as school buses, we established the Re-design Realization Conference for Public Transportation and compiled a certain amount of information on this point. We discussed with the Ministry of Land, Infrastructure, Transport and Tourism and relevant ministries and agencies, including Ministry of Education, Culture, Sports, Science and Technology, how we can realize mixed boarding of local residents by school buses and use of school buses that are used only in the morning and evening for transportation of local residents during the daytime when they are not in use, and presented ways of doing it. We would like to continue to promote efforts to use such resources for various purposes in cooperation with relevant ministries and agencies. Regarding the second point, there is a transportation method that does not require permission or registration under the Road Transportation Act. In this regard, if you only pay the actual costs such as gasoline and parking fees, you do not need permission or registration under the Transportation Act, and a separate guideline is provided that states that transportation is permitted. Within this range, transportation can be carried out in the form of mutual assistance between residents without the need for notification. Recently, it has been called cooperative ride-sharing, but efforts are being made in various areas, and we would like to work together on these efforts, including horizontal development.

Member Koda: Thank you Please tell me one more thing. In addition to the diversion of private school buses to meet social needs, are you considering utilizing existing public services, such as diverting public buses to schools that do not have school buses? For example, if there are no school buses for lessons, elementary schools, and junior high schools to commute from a wide area, the idea is to run local public buses exclusively for schools. Instead of school buses owned by schools, the idea is to change the routes of existing public buses that are not in operation and provide them to parents who need to pick up their children. By doing so, we believe that the burden of sending and picking up children currently borne by each family will be eliminated.

Mr. Tsuchida (Mobility Service Promotion Division, Policy Bureau, Ministry of Land, Infrastructure, Transport and Tourism): First of all, since elementary and junior high schools are compulsory education, it is already an effort to secure means of transportation by providing special school buses for students who commute from distant places. In addition, I would like to promote the use of school buses by local residents, which is what I mentioned earlier. Regarding other buses, for example, welfare buses and various buses provided by local governments run on similar routes, and if it is possible to transport students together, we would like to consider such a direction as part of cooperation with other fields.

Member Koda: Thank you .

Director Asayama: Thank you for . As for the questions to the secretariat and MONET Technologies Co., Ltd., I think I will receive various opinions from other members later, so I would like to answer them all later. Thank you, Mr. Yamamoto.

Mr. Yamamoto: I would like to express my opinions on Kotsu Shosha from the standpoint of ITS JAPAN and TOYOTA MOTOR CORPORATION, and as the first founder of MONET Technologies Co., Ltd.

First of all, I think it is necessary to share with everyone whether we consider the transportation trading company as a cost center or as a profit center. I myself think that it is more sustainable from the perspective of being supported by society as a cost center and as one of the transportation infrastructure necessary for society. To do so, we need to minimize the costs involved and maximize the efficiencies in operating it. I think we will be in a position where the public and private sectors will work together to promote this. However, the important point is that it must be a community-based activity. It must be supported in every corner of Japan. It must also be an organization that can take responsibility for the community. It must be something that contributes to the revitalization of the entire community and the improvement of the quality of life of the residents, not something that I will help.

However, one of my opinions is that we need to think about how we can fully utilize the strengths of the Japanese automobile industry and transportation society. On top of that, one of the characteristics of this country, which was not talked about at all today, is that there is a network of dealers all over the country. Not only TOYOTA MOTOR CORPORATION, but all car manufacturers, including Nissan Motor Co., Ltd., Honda Motor Co., Ltd., SUBARU CORPORATION, Suzuki Motor Corporation, and Daihatsu Motor Co., Ltd., have dealers. The salesmen and engineers at the dealers have detailed information about local residents' cars and other means of transportation. For example, they have a lot of information rooted in local residents, such as when they will replace their cars and when they will return their licenses when they are old. Therefore, in considering a transportation trading company, I would like to make a comment that we should consider utilizing the dealers that are currently all over Japan and that are also Japan's strengths.

Director Asayama: Thank you for . Thank you, Mr. Muramatsu.

Member MURAMATSU: I would like to tell you three points. First, regarding the function of the transportation trading company, I believe there is a minimum start as an important thing. If you spend too much on the initial cost, the running fee will rise, and in the end, you will not be able to continue without some kind of support. I think there have been many cases in the past. I think it is necessary to think about how not to spend the running fee.

The second point is that MONET Technologies Co., Ltd. told me about the importance of building a network in order to proceed. This is the same with the robot I am working on, and many people feel allergic to introducing a robot suddenly. I feel every day that the process of how to increase the number of friends and whether the friends support this initiative is very important. In this regard, it would be very helpful if the government could lend their help and cooperate in building friends and lowering psychological hurdles.

The third point. In the remarks from Hakuhodo Co., Ltd., there was a point of view on what kind of UX is important and how easy it is to use. We are in the same situation. For example, there are many cat-shaped serving robots that can be seen in family restaurants. To be honest, there is no need to be a cat-shaped robot at all, and it is functionally unnecessary. However, as a result, this design has gained social acceptance and has a good reputation among children, so UX is really important in the end. I think it is important that it is not a rugged and lumpy robot, but that it is easy for anyone to touch and use. When we take the first step, it is important to build on the points I just mentioned, including ourselves.

Director Asayama: Thank you for . Thank you, Mr. Suda.

Suda: I thought that the image of Kotsu Shosha is gradually becoming clearer. I would like to give you some comments. First, there are various mobility services, and I think how to combine them is important for actual operation. It is also important to understand what characteristics each service has. I am concerned about how far the Kotsu Shosha will be involved. In my laboratory, a working doctor is conducting research on MaaS. In areas with low population densities like the one targeted this time, we are considering how to realize alternatives to public transportation other than private cars. One is that we are conducting research on the effectiveness of combining on-demand services and car sharing, and we have achieved results. I think it is very important to consider such combinations of mobility services.

The second point is that I think the role of municipalities is very big. I thought it would be important to discuss to what extent municipalities should be involved.

The third point, on the contrary, made me worried when I heard earlier that Hakuhodo Inc.'s My Number Card could do it all. The point where anonymity disappears. Until now, public transportation and private cars had anonymity, and it was not possible to fully grasp who went where. However, if you use My Number Card, there is a possibility that that anonymity will be lost. With the weekly pattern of behavior, I think there are some trips where you don't know where you are going, unlike every day. I am worried about how to follow up on such things.

Murakami Director-General: . I will proceed on behalf of Asayama. Thank you, Mr. Wakana.

Wakana: I would like to ask about three things in Handout 2 about Kotsu Shosha.

First, regarding Step1, "Quantitative Understanding of Demand," on page 14 of Handout 2. As MONET Technologies Co., Ltd. mentioned earlier, I agree with the point that the front side of demand is important. Even if we ask users whether they have potential demand, it usually does not come out. Demand changes depending on the amount of supply, so it is difficult to get a quantitative understanding at this point. Therefore, I think we should put the "Urban Development Measures" on page 14 of Handout 2 in the blue box on the demand side. This is the front side of the demand that MONET Technologies Co., Ltd. says, and I think we should do a qualitative understanding rather than a quantitative understanding in Step1.

Next, regarding Step 2, "Actively working to create demand." At this point, it is more realistic to quantify by making the arrow bidirectional and exchanging several times, such as understanding the target of demand and proposing supply to it.

Finally, Step3 is "Adjusting supply and demand and promoting the efficiency of mobile services." It is of course important to match and improve efficiency when improving efficiency through common apps, but in order to improve efficiency, it is necessary to include non-profit sectors on the supply side. Hakuhodo Co., Ltd. was mentioned, but realistically, I don't think efficiency can be achieved without including sectors such as social welfare councils and school buses on the supply side. I would like you to consider this point again. In addition, I would like the transportation trading company function to not only match demand and supply, but also to play a role as a platform for revitalization to create new value. I can see that it is difficult to go out if there is no point that the outing itself is worthwhile and fun. I think that the positioning of the transportation trading company function, including community development policies and transportation measures, is realistic and has a dream. In terms of incorporating community development policies, for example, when events are held on Saturdays and Sundays, there is a request for the event side to match the supply side and the demand side. Since this part of community development measures will become an important sector, it is important to match in real time. I would like to add such an expression.

Murakami Director-General: . I look forward to working with you, Mr. Kuraishi.

Mr. Kuraishi (Director, General Planning Division, Land Policy Bureau, Ministry of Land, Infrastructure, Transport and Tourism): At the Advisory Council of the National Land Council, the Advisory Council is considering measures to realize initiatives to make regional living areas, that is, daily life services such as regional transportation, medical care, and education, sustainable across a wide area and in a wide range of fields in the public and private sectors. As the government will work as one, related ministries and agencies are cooperating and are planning to compile implementation measures by June. From the perspective of wide-area collaboration in daily life services that go beyond basic local governments, the Advisory Council members expressed the opinion that wide-area collaboration will be possible in the construction of digital platforms even if they are not in close proximity or remotely. In addition, in order for local governments, private companies, and residents to solve common regional issues, they discussed the need for cross-cutting tools that enable services such as digital public goods. At the next meeting in March, we will summarize the issues and organize the ideas for implementation. In terms of the realization of digital public goods and regional living areas, we will also discuss and consider policy collaboration, and I hope that we will continue to communicate in the future. Thank you.

Murakami Director-General: . Then, I would like to ask Mr. Aoki of Ito-Moss Mile Co., Ltd., who is working with Hakuhodo Co., Ltd. in the council to carve out a cooperative area.

Mr. Aoki: As Ms. Wakana mentioned on page 16 of Handout 2, our company has many opportunities to implement various measures for public transportation and support child-rearing in underpopulated areas with less than 20000 people. As a vendor of systems, we often approach from the "common application" described on page 16 of Handout 2, such as using My Number Card instead of taxi tickets or introducing a demand transportation system. If it doesn't work, we conduct research on the demand side and the supply side, and finally play a role like a transportation trading company.

However, in the end, we receive many questions about what the effect will be. As mentioned by MONET Technologies Co., Ltd., it is important to quantify what kind of value is created as a function of a transportation trading company. I feel that it is necessary to create a quantitative database specialized in value, which shows what kind of value and effect can be expected according to the different issues of each local government.

In addition, regarding digital public goods, as we create common parts with Digital Agency, Hakuhodo Co., Ltd., Will Smart Co., Ltd., and other private companies, I believe that discussions will also deepen on the areas of competition and cooperation. In addition to digital, it is important to optimize supply and demand and quantify value as a function of a transportation trading company. Since there are many local governments in underpopulated areas who think they should work on their own, there is a concept of a transportation trading company, and I feel that it is necessary to come up with a direction that Public-Private Partnership can work on.

Murakami Director-General: . Thank you, Mr. Kawabata.

Kawabata: Looking at the materials you compiled, I once again felt the difference in issues by region and by size.

The first thing I was concerned about was that it would be difficult to improve the efficiency of travel without sharing, no matter how much autonomous driving was promoted. In the past, when MaaS called Whim provided a subscription travel service in Northern Europe, there were people who signed up for an unlimited ride plan. In other words, there were more people who used it conveniently instead of using it as on-demand transportation because they didn't care how much they paid. As a result, traffic congestion in urban areas increased. In rural areas, public transportation is already fragile, and the number of taxis is limited. Under these circumstances, even if on-demand transportation is promoted, the traffic volume will increase too much, which will increase the burden on infrastructure and increase travel with high costs. Based on what we have learned from past cases and in light of the current transportation supply situation, I think it is necessary to first promote sharing, and then take steps to solve the shortage of human resources and improve convenience using technologies such as autonomous driving and digitalisation.

There is a possibility that the keyword "promoting ride-sharing" will be used alone when it comes to promoting ride-sharing, but I think that the concept of ride-pooling is closer than ride-sharing even for the same "ride-sharing." Ridepooling is a concept that has become popular in Europe and refers to shared services between taxis and buses. Also, I think there is a view that without stimulating demand, sharing will not progress. Marketing is important in stimulating demand. Marketing and sales front are areas where digital is strong, and I think these areas are also areas of cooperation. When it comes to the digitalisation of marketing and sales front by area or by project, the fact is that there is not enough money and people, but I think it is OK to think of stimulating movement itself as a cooperative area, such as moving to be fun and moving to be healthy, and I think it should be included in a common platform such as transportation trading companies and digital public goods. On the other hand, I think that the optimal individual transfer value must be done individually. When I heard about the efforts of Koda members earlier, there were certainly cases where they implemented individual optimizations for each area and community, and I think that is a necessary measure. I have consulted with members of Koda about the community in the Toba area in the past, and I am impressed that they are practicing individual optimization. On the other hand, it is costly and time-consuming to perform such individual optimization in all areas, so it is also important to cooperate in areas that can be divided into cooperative areas. The value of movement and the creation of destinations can be dealt with as cooperative areas. To be more specific, I think we can work on a platform as a collaborative domain, such as creating an event that makes people want to gather and rotating the event in various places, or selling local secondary transportation together with airline tickets at events such as festivals.

In addition, there is a very serious problem that only local governments that can secure a budget of several tens of millions, as mentioned earlier by the Murakami Director-General, can introduce MaaS. On the other hand, there are some local governments that cannot introduce MaaS due to budget constraints. In the first place, there are many local governments that cannot even overcome the hurdles to DX. In order to improve such a situation, the concept of digital public goods is very important. The issue here is where to draw the line in the competitive domain. At present, it is difficult for local governments other than those that have the power or can secure subsidies to introduce MaaS. For example, if a consultation is received from the perspective of wanting to solve the mobility problem, it is difficult to secure the budget when the person who received the consultation starts to go to get subsidies and also take care of digitalisation. Even if the budget is secured, we will have to work on building a platform. In rural areas, IT companies are limited, so I thought it is very important to make it a public good. In any case, the value of mobility and marketing to create mobility will be done as a cooperative domain together with digitalisation, and then demand will be stimulated from there, and transportation will be promoted, and technology such as autonomous driving will cover the shortage of human resources.

Murakami Director-General: . I would like to ask Mr. Ishii of Will Smart Co., Ltd., who is working with Itsmos Mile Co., Ltd.

Mr. Ishii: As an IT vendor, I am participating in the study on the specifications of the digital public goods and common infrastructure, which I have been talking about for a while. Digital is something that goes beyond regions, and it has the characteristic that data can be shared in common. However, transportation is vertically divided and area by area, so there has been a problem that the characteristics of digital could not be fully utilized. As Director-General Murakami explained, we can help improve the supply capacity by compiling common specifications, sharing functions, and providing a situation where similar products can be used at the lowest possible price, especially for local governments. At the same time, by using this, we can obtain various data. Of course, while masking the data that identifies individuals to a certain extent, we can share the data as much as possible while partially ensuring the safety and characteristics of the data. For example, in marketing, by distributing the demand confirmed in a certain region in the common infrastructure, we will not only be able to search for demand in our own region, but also be able to grasp the trend demand a little wider. In the future, as we finalize the specifications, we would like to increase the shareability and common usability of this data.

Murakami Director-General: . Thank you, Mr. Hidaka.

Hidaka: As for the concept of Kotsu Shosha, I think it is important for the government to solve traffic problems, but I also thought that it would be possible to scale up as a Kotsu Shosha as a private profitable business, so I would like the secretariat to consider it.

Murakami Director-General: Thank you very much. May I have a word from MONET Technologies Co., Ltd.?

Mr. Yumikake: I would like to respond to a question from Koda . We are working with local transportation companies to recruit and find drivers, so MONET Technologies Co., Ltd. does not find drivers by itself. However, I believe that the shortage of drivers is a common issue for all of you, and one of the solutions is ride-sharing, followed by autonomous driving. In any case, I do not believe that the shortage of drivers can be resolved overnight, so we are exploring ways not just to increase the number of drivers. I also mentioned that the effect is not measured only in a single fiscal year. I believe there was a question about how many years. For example, the economic effect of increasing the number of long-term residents, for example, it is difficult to say that the number of people will increase just because the movement of people has become more convenient due to MaaS. The same applies to the reduction of medical expenses, which I believe varies depending on the disease. In this regard, there are cases where we look at it in a single fiscal year, and there are cases where we combine several fiscal years. In any case, we would like to show that movement is effective in solving the problem. In addition, regarding the Toba area that Mr. Koda mentioned, I would like to ask for your cooperation separately.

Murakami Director-General: .

Ishida: I would like to make three points. As Section Chief Kuraishi mentioned, the function of a transportation trading company is very similar to that of a regional management corporation in a local living area, so I would like to ask you to work together. As for the purpose of the transportation trading company function, I think the purpose is to vertically integrate good services and enhance the sustainability of the area. However, as Muramatsu also mentioned, when you start, you can't start if you are too ambitious. For example, people related to medical care and education are having a hard time, and if you start with bedrock regulations, it will be out of control. In addition, regarding the 3 million yen club mentioned by Director-General Murakami, if you gather 10 regions, additional functions tailored to the regions will increase, and in the end, there is a concern that the budget of 30 million yen will not be able to be accommodated. In that sense, I thought we had to think carefully about how a minimum start should be.

The second is the issue of data and privacy. I think this is also related to the topic of cooperation and competition, but it is important who is the real owner of the data. This is the citizens, the people, the users, etc. When we think about solving social issues for them, I think that there is no way out as it is now unless we discuss the real owner and the real social issues, not the person who manages the data.

The third point is my impression of Handout 2. I feel that the way to grasp potential demands and the players of transport trading companies are too narrow. Mr. Hatakeyama was not mentioned, but the great thing about Asahimachi in Toyama prefecture is that it is a society where people are brought together and brought together. I think it is important that there is no boundary where sometimes people are helped and sometimes people who are helped are replaced by people who receive services. I would appreciate it if you could expand the frame a little more about potential demands at such times and who are the players of transport trading companies.

Murakami Director-General: . I would like to summarize three points.
First, I understand that there is no objection to the fact that you think it is difficult to find a starting point that can overcome the twist of having to step into value creation even though it is a minimum start, and whether you can explain the actual effects of the business well. On the other hand, I understand that you pointed out that it is difficult to start.

The second point is that it may be good if the tools are common. I think we have basically agreed, but the ride-hailing app and the control system do not need to be different for each local government. In addition, as a player in charge of this, we received advice on how to use local automobile dealers and how to properly discuss local management corporations.
Third, it is necessary to sort out the data to be used from the viewpoint of privacy and social acceptability.
I have received about three major points and assignments. I hope that you will deepen this discussion for the next meeting. Now, before closing the meeting, Mr. Chief Mori, I would like to ask for today's summary.

Mori Chief: Everyone, thank you for the long and lively discussion. I would like to express my deepest gratitude to Mr. Yumikake and Mr. Hatakeyama for providing the topics. This was a very meaningful and helpful explanation in advancing today's discussion. We have received various opinions, but the expansion of mobility services is indispensable for promoting regional revitalization. I think the value creation of MaaS introduced by MONET Technologies Co., Ltd. is an indirect effect, but I think it would be easier for local governments to start working on it if they discuss how to analyze the cost structure, including data, in order to show the direct effect. For example, the cost of mobility tools such as buses and cars, the cost of infrastructure related to transportation maintenance, information platforms, information infrastructure costs for each service such as medical care and schools, and labor costs. By analyzing the cost structure of these mobility services and explaining them in an easy-to-understand way, I think it would be easier for local governments to work on it. Earlier, there was an explanation about the 3 million yen group, but I thought it would be necessary to analyze what kind of services are provided and how much money is required as local governments advance.

In particular, as you discussed this time, it is essential to promote various mobility services in areas where transportation trading company functions and freedom of movement are limited. I hope that you will reflect the points discussed this time in the formulation of the Mobility Roadmap 2025. I hope that each ministry and agency will also consider how they can support the spread and establishment of transportation trading companies and make suggestions.

At the next Mobility Working Group, as I introduced earlier, we are planning to discuss the draft outline of the Mobility Roadmap 2025. We would like you to include the demonstration and implementation of autonomous driving, which you have been discussing since last time, and make proposals to the ministries and agencies. In the end, it will be brought into the government decision process, so we would like you to propose solutions to what the ministries and agencies want to do and what will become an issue, and compile them. I would like to continue to ask the members to actively discuss and make proposals, and this will be my greeting.

Murakami Director-General: Thank you very much. The next meeting will be held on March 27. As described in Handout 6, I will consult with the members of the Cabinet Office and each Ministry individually until March 27. I believe that the opinions and awareness of the issues from the members of the Working Group have almost been exhausted, so on March 27, I would like to receive a report on the progress of the measures taken by the Cabinet Office and each Ministry based on this, and at the same time, I would like to announce a draft outline based on the results of the individual consultation. The materials, minutes, etc. will be disclosed as usual. Thank you for taking the time to attend today.

Or more

Mobility Working Group (8th)

Overview

Material

Minutes

Related Links