Daiwa Motor Transportation Co., Ltd.

Fluctuations in fuel prices, changes in inbound demand, and regulatory changes such as stricter regulation of ride-hailing apps and fare revisions directly affect business performance. Increasing competition in mobility services is also a factor pressuring earnings. As countermeasures, the company is promoting diversification of revenue sources through flat-rate services and strengthened corporate contracts, as well as efficiency improvements through the introduction of digital dispatch systems.

A shortage of taxi drivers, rising turnover rates, and an aging workforce raise concerns about declining vehicle utilization rates. In particular, an increase in elderly drivers also leads to higher safety management costs. As countermeasures, the company is hiring foreign drivers utilizing the Specified Skilled Worker system, implementing engagement improvement measures, introducing flexible work systems, and conducting regular safe driving training.

In addition to the impact of extreme weather events such as heavy rain and typhoons on business operations, there is a risk that stricter decarbonization regulations and tightening emissions regulations will push up fuel costs and vehicle replacement costs. The company is addressing this through the introduction of hybrid vehicles and promotion of fossil fuel reduction in line with its medium-term management plan, fuel-efficient operations, and improved natural disaster response capabilities.

The company is required to respond to changes in transportation-related laws, amendments to labor laws, compliance with laws related to foreign workers, and personal information protection/privacy regulations. As the hiring of foreign workers under the Specified Skilled Worker program expands, the risk of violating related laws also increases. The company addresses this through continuous monitoring of legal amendment trends by the head office department, internal training and manual updates, and cooperation with external support organizations.

Changes in the fund-raising environment and rising interest rates pose a risk of increasing procurement costs for bank borrowings, leases, etc. Variable costs such as fuel expenses are also a factor increasing uncertainty in business performance. In the medium-term management plan, the company has clarified measures to maintain and improve financial soundness indicators such as the equity ratio and debt repayment period, and is strengthening cost management.

There is a risk that natural disasters such as earthquakes, typhoons, and heavy rain could damage business offices and vehicles or cause traffic restrictions that halt operations. In the event of an infectious disease outbreak, demand could sharply decline, potentially having a severe impact on earnings. The company addresses this through the development and training of emergency response manuals, consideration of alternative facilities and temporary operation systems, and the stockpiling of hygiene supplies and emergency provisions.

There is a risk of losing stakeholder trust due to a decline in corporate image following accidents or troubles, or the spread of negative information via social media. Given the nature of the passenger automobile transportation business, incidents related to safety in particular have a significant social impact. The company aims to maintain brand value through the establishment of a public relations structure centered on the Corporate Planning & Public Relations Office of the Management Administration Department, a system for rapid information disclosure in the event of a crisis, and continued CSR activities.

Advances in autonomous driving technology and the rise of mobility platform operators pose a risk that the existing Taxi Business and Hire Car Business models could become obsolete in the future. The company addresses this through technology trend research, consideration of collaborations and development, and investment decisions as necessary, although specific investment scale and timing have not been disclosed.

Intensifying competition with mobility platform operators and new market entrants raises concerns about the loss of existing customers and deteriorating profitability due to fare competition. The entry of emerging operators utilizing ride-hailing apps is making the competitive environment particularly severe in urban areas. The company aims to maintain its competitiveness through the development of differentiated services and the promotion of digitalization and efficiency improvements.

As the hiring of foreign drivers expands through the use of the Specified Skilled Worker system, there is a risk of issues arising related to compliance with relevant laws and regulations, management of residency status, and language and cultural communication challenges. If a legal violation occurs, it could lead to administrative penalties or a decline in social credibility. The company addresses this through cooperation with external support organizations and the establishment of hiring and management systems compliant with relevant laws and regulations.