newmo raises ¥20.8 billion Series B led by KDDI

newmo was founded in January 2024 and has grown quickly by bringing nine taxi operators into its group, operating about 1,900 taxis across six regions and employing more than 2,800 people. Alongside its taxi business, it runs a ride-hailing app, a Japanese version of ride-sharing, and staffing services for essential workers, while using AI to streamline operations and strengthen driver recruitment.

The company is developing its own autonomous driving AI tuned for Japanese roads and has been collecting data and running trials in Sakai and Osaka since this year. That work was selected for GENIAC, a generative AI development project run by the Ministry of Economy, Trade and Industry and NEDO. newmo positions its model of vertically integrating taxi operations with in-house autonomous driving AI as unique in Japan, arguing that its daily on-the-road experience across varied Japanese conditions is what allows it to build AI suited to local roads.

The funding comes as Japan's regional transport sector faces driver shortages amid population decline and aging, with route buses cutting services or shutting down and creating transport gaps. The government has set a target of introducing 10,000 autonomous service vehicles, including buses and taxis, nationwide by fiscal 2030. newmo plans to use the proceeds to expand its taxi business nationwide — including into Fukuoka, where it announced entry in October — and to work toward a fleet of 10,000 manned taxis in the future.