After completing Japan's largest IPO since 2026, ride-hailing platform Go has begun clarifying the use of its raised funds. The company stated that the 88.6 billion yen raised will primarily be used to expand its robotaxi business and pursue mergers and acquisitions. This funding also makes Go one of the few tech companies to complete a large-scale financing round in Japan's sluggish IPO environment.
Go's IPO comes at a time when Japan's new stock market is relatively sluggish. The report notes that the Japanese government has recently favored encouraging startups to sell themselves rather than go public independently. Against this backdrop, Go still attracted participation from institutions such as BlackRock, Wellington Management, and M&G Investment Management.
However, the secondary market performance was not strong. Go closed at 2,314 yen on Friday, about 4% lower than its offering price of 2,400 yen, indicating that investors are still waiting to see how it performs in terms of future growth potential.
88.6 billion yen invested in two businesses
Go stated that the 88.6 billion yen, or approximately $553 million, raised in the IPO will be used for two key areas: expanding its Robotaxi business and seeking acquisition opportunities.
The company did not disclose specific acquisition targets, nor did it provide a clear timetable for the large-scale commercialization of autonomous taxis. However, judging from the funding arrangements, Robotaxi has been listed as a core expansion direction after the IPO.
Driver reduction drives autonomous driving deployment
Go views its self-driving taxis as a response to the pressures of real-world operations. Japan's taxi industry has faced a persistent driver shortage in recent years. The report cites data from Japan's Ministry of Land, Infrastructure, Transport and Tourism, stating that the number of taxi drivers has decreased by approximately 20% in recent years.
In this context, Robotaxi is not just a new business experiment, but also relates to the platform's future capacity. Go stated that it will only launch fully autonomous driving operations without safety drivers after the technology has been validated and approved.
The company has not yet announced the specific timeline for this phase.
Waymo and Uber are both establishing operations in Tokyo.
In its autonomous driving strategy, Go has partnered with Waymo, Alphabet's self-driving car company, and Nihon Kotsu, a major Japanese taxi operator. According to the company, Go's primary role in these partnerships is strategic coordination.
Go CEO Hiroshi Nakajima has previously stated that the company will not invest in developing its own autonomous driving system. This suggests that Go is more likely to act as a platform and operations integrator rather than a provider of underlying technology.
Before fully driverless vehicles are deployed, Go is still strengthening its traditional ride-hailing business. The company has partnered with KakaoT, Alipay, and WeChat Pay to allow visitors to Japan from South Korea, China, and Taiwan to directly hail Go-affiliated taxis through their local apps.
Go isn't the only company betting on the Tokyo robotaxi market. In March, Uber, Wayve, and Nissan announced plans to test robotaxi services in Tokyo by the end of 2026. This marks Uber's first collaboration with autonomous vehicles in Japan.
The service will reportedly use Nissan Leaf electric vehicles equipped with Wayve AI Driver and will be available through the Uber app. Uber has also partnered with S.Ride to serve international travelers. Didi Mobility Japan, a joint venture between SoftBank and Didi Chuxing, has similar plans.
