Go eyes robotaxis and acquisitions behind the big Japanese IPO of 2026. Here’s why it’s important

Go’s IPO — Japan’s largest so far this year — has done more than provide a much-needed boost to the country’s stock market season. It also provided a taxi-hailing operation with the capital needed to address a pressing problem: Japan’s shortage of drivers.

Go, which went public on Tuesday, plans to use the ¥88.6 billion ($553 million) raised from its IPO to expand its robotics business and make acquisitions, according to a company spokesman.

“We intend to use the proceeds from the sale of newly issued shares to invest in research and development related to robotaxis and investments in business expansion, including strategic integration and acquisitions of our business within and outside the taxi industry,” said the spokesperson.

Japan’s first taxi-hailing company arrived during one of Japan’s quietest periods for listings, at a time when the government told start-ups to sell themselves rather than go public. Go attracted investment from BlackRock, Wellington Management, and M&G Investment Management in the process, underscoring where global institutional money is willing to go in Japan right now. The stock retreated below its price, closing at ¥2,314 on Friday, down about 4% from its IPO price of ¥2,400.

Go’s robotaxi ambitions are focused on the human problem. Japan’s taxi industry is running out of drivers. The number of taxi drivers has dropped by nearly 20 percent in recent years, according to a report citing Japan’s Ministry of Land, Infrastructure, Transport and Tourism.

An aging population means that the population is less likely to return. Ride-share services were launched in Japan in 2024, but remain limited to certain areas and require drivers to be hired by a taxi company; The restrictions did little to address this deficit.

Go was founded in 1977 as a taxi operator and now operates Japan’s largest ride-hailing app with 35 million downloads, 85,000 partner vehicles, and an 80% share of the Japanese taxi app market at the time of use, covering 46 of Japan’s 47 prefectures.

Go believes that robotaxis will be part of its future – although it is unclear when that vision will become a reality.

Go has partnered with Waymo, Alphabet’s autonomous driving company, and Nihon Kotsu, one of Japan’s largest taxi operators. Go is responsible for the strategic communication of the partnership, according to the spokesperson. CEO Hiroshi Nakajima has previously said that Go will not invest in autonomous driving programs itself, according to Nikkei Asia.

Go has not set a timeline for fully driverless operations.

“We plan to start driving fully autonomously, without human expertise, when we validate our technology and get permission to do so,” the spokesperson said.

In the meantime, Go is looking for ways to give its traditional business a competitive edge. For example, the company has partnered with Kakao T, Alipay, and WeChat Pay that allow inbound travelers from South Korea, China, and Taiwan to hail Go-connected taxis directly through their local apps.

Go isn’t the only company betting on the future of robots in Tokyo.

In March, Uber, Wayve, and Nissan announced plans to pilot robotic services in Tokyo by late 2026, marking Uber’s first partnership for autonomous vehicles in Japan. The service will use Nissan Leaf electric vehicles powered by Wayve’s AI Driver, and will be booked through the Uber app.

Uber has also teamed up with S.Ride to allow foreign tourists to book rides through the Uber app. Didi Mobility Japan, a joint venture between SoftBank and Didi Chuxing, has a similar plan.