In towns like Arao, where populations are aging and shrinking, and are spread over wide areas, bus and train services are often scarce, but hiring a taxi can be expensive. The result is that many residents — especially senior citizens — end up needlessly stuck at home…

The program’s vehicles — two electric Nissan Leaf cars, painted New-York-cab yellow — are essentially shared taxis, connected to an artificial-intelligence-based platform that manages bookings, calculates fares and navigates constantly shifting routes. Passengers can hail an OMOYAI ride by smartphone app or phone. They pay more than they would for the bus, but only about half the cost of a normal taxi. Arao Taxi and two other local cab companies charge the city a fixed daily fee to operate the service…

The AI platform was designed by Mirai Share, a startup founded by computer science researchers at Future University Hakodate in Hokkaido.