newmo Raises 20.8 Billion Yen Series B Led by KDDI for Robotaxis

newmo and KDDI agreed a capital and business alliance on 6 November. KDDI and KDDI Smart Mobility will supply network connections between vehicles and remote monitoring centers, AI computing infrastructure for training and inference, remote monitoring and high-precision positioning.

Taxis plus in-house driving AI

Founded in January 2024, newmo has brought nine taxi companies into its group. It runs about 1,900 taxis across six regions, Osaka, Kanagawa, Tokyo, Okinawa, Hokkaido and Aichi, with more than 2,800 employees, placing it among Japan's ten largest fleets by vehicle count. It also operates the newmo ride-hailing app, Japan's version of ride-sharing and a staffing service for essential workers.

The company develops its own AI model tuned to Japanese road conditions and has been collecting data and testing in Sakai and Osaka this year. The project was selected for GENIAC, the generative AI program run by the Ministry of Economy, Trade and Industry and NEDO. CEO Naoki Aoyagi argues that running a daily taxi operation across varied weather, times of day, congestion and narrow streets is what allows newmo to build driving AI for Japan, a vertically integrated model the company calls unique in the country.

Where the money goes

The funds will go to expanding taxi operations nationwide and deploying autonomous taxis. On the taxi side, newmo will grow in existing areas and enter new ones such as Fukuoka, announced in October, through new entities or business succession, aiming eventually for 10,000 human-driven taxis.

For robotaxis, the first commercial target is Sakai, Osaka Prefecture, in 2028, initially with safety drivers on board. The fleet would then grow in stages toward around 1,000 vehicles. The plan fits a government goal of 10,000 autonomous vehicles in bus and taxi services nationwide by fiscal 2030, as driver shortages and an aging population erode regional transport.