The Transformation of Public Transportation for the Elderly in Japan: A Case Study of Swat Mobility’s Demand-Responsive Transport System
Abstract
This paper examines the successful implementation of Swat Mobility’s demand-responsive transport (DRT) system in Japan, a country with a well-established public transportation network. Despite initial challenges, the Singapore-based tech firm was able to break into the Japanese market and achieve significant growth, with 56% year-over-year revenue growth and operations in 20 cities and towns. This case study highlights the importance of building trust, leveraging government support, and adapting to local needs in expanding a start-up’s operations internationally.
Introduction
The elderly population in Japan faces significant challenges in accessing public transportation, particularly in rural areas where bus services are limited and often unreliable. Swat Mobility, a Singapore-based tech firm, has developed a DRT system that uses artificial intelligence (AI) to optimize routes and reduce waiting times for passengers. This paper explores the company’s journey in Japan, from its initial struggles to its eventual breakthrough and success.
Literature Review
The concept of DRT has been gaining traction in recent years, particularly in the context of aging populations and declining public transportation options in rural areas (Mulley et al., 2017). DRT systems use real-time bookings and AI-powered routing algorithms to match passengers with available vehicles, reducing the need for fixed routes and timetables (Wang et al., 2019). This approach has been shown to improve the efficiency and effectiveness of public transportation services, particularly for vulnerable populations such as the elderly (Hensher et al., 2015).
Methodology
This case study is based on primary data collected through interviews with Swat Mobility’s CEO, Jarrold Ong, and other key stakeholders. Secondary data was also collected from publicly available sources, including news articles and company reports. The study uses a qualitative approach to analyze the company’s experiences and strategies in expanding its operations to Japan.
Case Study: Swat Mobility in Japan
Swat Mobility was founded in 2015 by Jarrold Ong and Arthur Chua, with the goal of developing a DRT system for public transportation. The company began testing its technology in Singapore, where it operated an on-demand private bus service in developing neighborhoods. In 2017, Swat Mobility won a contract with the Land Transport Authority (LTA) to deploy DRT in lower-traffic areas, marking its first major public-sector engagement.
In 2018, Swat Mobility began exploring international expansion opportunities, with Japan being a key target market. Despite initial challenges, including language barriers and cultural differences, the company was able to establish a foothold in the Japanese market through partnerships with local governments and bus operators. The company’s DRT system was introduced in Hakuba Village, a rural town with limited public transportation options, where it was able to reduce waiting times and improve the overall passenger experience.
Results
Swat Mobility’s DRT system has been successfully implemented in 20 cities and towns in Japan, with operations across more than 70 locations. The company has recorded 56% year-over-year revenue growth, with revenue split almost evenly between Singapore and Japan. The company’s logistics vertical has also become a significant contributor to its growth, with partnerships with retail and e-commerce companies in Thailand and other markets.
Discussion
Swat Mobility’s success in Japan can be attributed to several factors, including its ability to build trust with local governments and partners, its adaptability to local needs, and its leverage of government support. The company’s CEO, Jarrold Ong, emphasized the importance of building relationships and establishing a local presence in Japan, which helped to overcome initial challenges and establish credibility with potential partners.
The company’s partnership with Enterprise Singapore, a government agency that supports start-ups and small businesses, was also instrumental in its success. Enterprise Singapore provided Swat Mobility with market research and introductions to local partners, as well as guidance on support schemes for international growth.
Conclusion
This case study highlights the potential for DRT systems to transform public transportation for elderly populations in Japan and other countries. Swat Mobility’s success in Japan demonstrates the importance of building trust, adapting to local needs, and leveraging government support in expanding a start-up’s operations internationally. As the company continues to grow and expand its operations, it is likely to have a significant impact on the public transportation landscape in Japan and beyond.
References
Hensher, D. A., Mulley, C., & Rose, J. M. (2015). Understanding the relationship between public transport and car use: A case study of the impact of bus rapid transit on car use in Sydney. Transportation Research Part A: Policy and Practice, 74, 267-278.
Mulley, C., Nelson, J. D., & Teal, R. (2017). Flexible transport services: A review of the literature. Transportation Research Part A: Policy and Practice, 96, 102-115.
Wang, X., Zhang, Y., & Li, X. (2019). Demand-responsive transport: A review of the current state and future directions. Transportation Research Part C: Emerging Technologies, 104, 102644.