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Unlicensed Taxi Service Targeting Chinese Tourists Arrested in Japan! Why Is “Shiro-taku” Illegal?

Taxi in Japan

Recently, news broke that an individual was arrested in Hyogo and Osaka for operating an unlicensed taxi service, commonly known as “shiro-taku.” The arrested individual, a Chinese national living in Japan, had been primarily targeting Chinese tourists with these illegal taxi services. “Shiro-taku” operations are illegal in Japan, yet unlicensed taxis aimed at foreign tourists are on the rise. In this article, we will explain why “shiro-taku” is illegal, the risks faced by users, and why such services targeting Chinese tourists are becoming more prevalent.

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What is “Shiro-taku”?

“Shiro-taku” refers to cars that operate taxi services without the necessary legal permits. In Japan, taxi services must be licensed under the Road Transportation Act. However, “shiro-taku” operators do not have these permits and illegally charge passengers. These vehicles are registered as private cars with “white license plates,” unlike the green plates used by officially licensed taxis. This is why they are referred to as “shiro-taku” (white taxis).

Under Japanese law, only licensed taxi operators can legally charge passengers for rides, and unlicensed operations are strictly prohibited. Violations of the Road Transportation Act can lead to fines or imprisonment for those involved in “shiro-taku” activities.

Why is “Shiro-taku” Illegal?

There are three primary reasons why “shiro-taku” is illegal:

  1. Safety Issues: Licensed taxi drivers must pass certain exams and meet standards for driving skills, customer service, and safety awareness. Additionally, licensed taxi vehicles undergo regular inspections and maintenance to ensure safety. On the other hand, “shiro-taku” operators do not meet these standards, which increases the risk of accidents for passengers.
  2. Lack of Insurance Coverage: In most cases, “shiro-taku” vehicles are not covered by commercial insurance. Licensed taxis are insured to protect passengers in the event of an accident, but “shiro-taku” passengers may not be covered, leaving them vulnerable if an accident occurs.
  3. Unfair Competition: Since “shiro-taku” operators avoid the costs of obtaining permits, paying taxes, and acquiring insurance, they can offer lower prices than legitimate taxi companies. This creates unfair competition and negatively impacts the entire industry.

Why Are Chinese Tourists Targeted?

In this recent case, the “shiro-taku” operator specifically targeted Chinese tourists. There are several reasons why Chinese tourists are often the focus:

  1. Language Barriers: Tourists who do not speak Japanese may struggle to use licensed taxis or public transportation. This language barrier makes them more likely to use “shiro-taku” services, where communication may be easier.
  2. Lack of Information: Many foreign tourists are unfamiliar with Japan’s transportation systems and the rules governing taxi services. As a result, they may unknowingly use “shiro-taku” without realizing it is illegal.
  3. Appealing Prices: “Shiro-taku” services often offer lower fares than licensed taxis, making them economically attractive for tourists, especially for long-distance trips or transport between tourist destinations.

Risks for Tourists Using “Shiro-taku”

Tourists who use “shiro-taku” face several risks:

  1. No Compensation in the Event of an Accident
    Since “shiro-taku” operators often lack commercial insurance, passengers may not receive compensation if an accident occurs. In severe cases, passengers may have to bear the cost of medical treatment or damages themselves.
  2. Unreliable Drivers
    Unlike licensed taxi drivers, “shiro-taku” drivers do not undergo professional training or testing. Passengers may encounter drivers with poor driving skills or unprofessional behavior.
  3. Pricing Issues
    Since there are no regulations governing “shiro-taku” fares, passengers may be overcharged. Foreign tourists, unfamiliar with standard rates, are particularly vulnerable to being scammed.
  4. Risk of Fraud or Crime
    Some “shiro-taku” operators engage in fraudulent or criminal activities, such as taking longer routes to increase fares or demanding cash payments. In more serious cases, passengers may be at risk of robbery or assault.
  5. Legal Responsibility
    Using “shiro-taku” services is illegal, and passengers may face penalties for knowingly using them. Tourists could be fined or detained, leading to legal troubles during their trip.

The Rise of “Shiro-taku” Services

In recent years, the number of “shiro-taku” services targeting foreign tourists, particularly in tourist areas like Hyogo and Osaka, has been increasing. This is partly due to the use of social media and messaging apps (such as WeChat) to advertise and book services. Tourists often book “shiro-taku” in advance online, allowing them to use the service as soon as they arrive in Japan.

Some “shiro-taku” operators even offer additional services, such as tour guide or interpreter services, to cater to tourists’ needs. These offerings make “shiro-taku” an appealing option for tourists who want a convenient and affordable transportation solution.

Crackdown and Countermeasures Against “Shiro-taku”

Japanese authorities have been stepping up efforts to crack down on the rise of “shiro-taku” services. In this case, the individual was arrested as part of these enforcement efforts. In tourist hotspots like Hyogo and Osaka, police are increasing efforts to raise awareness among tourists and monitor “shiro-taku” operators. Major airports and tourist destinations are also under heightened surveillance for illegal taxi activities.

Those operating “shiro-taku” services face significant penalties, including fines and imprisonment, for violating the Road Transportation Act. Tourists who use these illegal services may also face legal consequences, so it is essential to stay vigilant.

How to Avoid “Shiro-taku”

To avoid the risks of “shiro-taku,” tourists should use licensed taxis or approved ride-sharing apps, which are safer options. Licensed taxis have green license plates and are easy to spot. Booking taxis through travel agencies or hotels can also provide a reliable and secure service.

Public transportation is another safe and economical option for tourists. Preparing by researching Japan’s transportation rules and options before traveling can help avoid potential issues.

Conclusion

The increase in “shiro-taku” services in Tokyo, Hyogo and Osaka presents serious safety and legal concerns. These services, especially those targeting Chinese tourists, exploit language barriers and lower prices to attract customers. However, tourists using “shiro-taku” face significant risks, including accidents, legal penalties, and even criminal activity. It is crucial to use licensed and trustworthy transportation options while traveling in Japan. When choosing how to get around, safety and reliability should be top priorities, and caution should be exercised to avoid unlicensed services.

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