Japan’s transport system may be world-renowned for its punctuality and efficiency, but beneath that polished surface lies a growing challenge: how to serve an ageing, decentralising population without sinking under the weight of unprofitable, outdated routes.
Into this complex landscape steps SWAT Mobility, a Singapore-born AI routing startup that’s rapidly becoming one of Japan’s most intriguing transport partners.
Since entering the market in 2020 with encouragement from Japanese investors like UTEC, SWAT Mobility has quietly expanded into over 70 Japanese municipalities.
But what’s driving this demand? It’s not just the tech—it’s timing. With the Japanese government now formally backing demand-responsive transport (DRT) as a key model for modern mobility, SWAT’s AI-powered solutions have found both relevance and resonance.
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In this conversation, CEO Jarrold Ong shares what drew SWAT to Japan, how its platform powers more inclusive, efficient transport networks, and why Japan is not just a proving ground but a launchpad for Southeast Asian innovation on the global stage.
Excerpts:
What first drew SWAT Mobility to Japan’s mobility space? Was there a specific gap or challenge that made it clear your solution would fit? How would you describe the key structural challenges that SWAT is trying to solve in Japan’s transport ecosystem?
Our Japanese investors, like the University of Tokyo Edge Capital (UTEC), encouraged us to explore the Japanese market. We discovered that many of the smaller towns in the country faced challenges such as rural transport issues and an ageing population. By 2050, one-third of Japan’s population will be 65 or older, with a concentration of older adults in rural regions due to urban migration.
Current public transport options like fixed-schedule buses fail to meet the specific needs of elderly residents, including inconvenient bus stops, long distances, or poorly timed schedules for essential trips like hospital visits. Public transport operators also struggle with profitability due to low ridership.
The central government has embraced demand-responsive transport (DRT) as a viable solution to these challenges. Multiple regional trials have demonstrated DRT’s potential to deliver more flexible, cost-effective transportation for elderly residents. The government has formally endorsed DRT as an official public transport model, targeting implementation in 500 cities in the next few years. To encourage adoption, municipalities receive subsidies to explore proof-of-concept (POC) projects.
This initiative creates substantial opportunities for tech-driven solutions like SWAT Mobility’s platform to revolutionise public transportation efficiency.
Japan is known for its efficiency and strong transport infrastructure. Where do you see the most enormous inefficiencies or gaps your AI platform helps close?
City governments and public transport operators in Japan face a growing challenge: their public transport systems are often unprofitable, with subsidies used to sustain inefficient fixed-schedule bus routes. These routes, however, fail to meet the needs of elderly residents due to inaccessible bus stops, inconvenient schedules, and limited flexibility.
SWAT Mobility’s platform provides city governments and public transport operators with the tools to transition from traditional, inefficient bus routes to a flexible, data-driven, cost-effective DRT system. This not only benefits elderly and underserved populations but also supports the long-term viability of public transport systems across Japan.
Can you explain how SWAT’s AI-powered vehicle routing works in the Japanese context, especially when layered over local taxi networks?
Transport Analytics Platform: Our Transport Analytics solution enables city governments and public transport operators to visualise their ridership data, uncover insights, and optimise their existing services. Municipalities can analyse current fixed-route operations with our platform to identify inefficiencies and test alternative solutions like Demand-Responsive Transport (DRT).
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Additionally, the platform allows simulations to compare the effectiveness of replacing traditional routes with DRT services. We also provide data analytics consulting services where we source, study, and process relevant data to generate useful insights, enabling clients to make data-driven decisions. Our platform will automatically suggest improvements in the future, streamlining the optimisation process.
SWAT Mobility CEO Jarrold Ong
DRT System: It offers a flexible and cost-effective alternative to fixed-schedule buses. This solution can be tailored to fit each city’s unique boundaries and service requirements, allowing public transport operators to offer more personalised and efficient service.
- Booking flexibility: Passengers can easily book rides through the Passenger app or via the call centre. This allows for greater flexibility in scheduling, making it easier for elderly passengers to secure rides for appointments like medical visits or grocery shopping.
- Optimised operations: Once a booking is made, our algorithms automatically assign rides to the most efficient vehicle, minimising the number of vehicles on the road and reducing unnecessary mileage. This means fewer empty vehicles driving around, leading to significant cost savings.
- AI-driven driver support: Drivers use the Driver app, which provides turn-by-turn navigation and guides them to pick up and drop off passengers in the most efficient order. By leveraging AI, the system ensures drivers operate only when passengers are onboard, further optimising vehicle utilisation.
- Enhanced accessibility: The system can also offer doorstep pickups and more flexible service times, ensuring that elderly residents have easier access to public transport at times that fit their schedules.
Our DRT solution has consistently proven to be more cost-effective than traditional fixed-route services. By reducing the number of vehicles needed, optimising routes, and increasing accessibility, DRT services can deliver better outcomes with the same or lower operational costs. This results in greater ridership, improved public satisfaction, and a more sustainable transport system.
What kind of data inputs does your system rely on in Japan, and how do you localise your tech to fit unique traffic flows, road layouts, or cultural commuting habits?
We partnered with Zenrin to obtain more accurate map data. Our end-user applications, such as the Passenger and driver apps and call centre software, can be white-labelled and localised in the Japanese language. As part of the service setup, we typically also run simulations and transport planning for our clients.
How does Japan fit into SWAT’s broader growth strategy? Are you targeting other developed markets with similar demographic and infrastructure dynamics?
Japan is a key part of our growth strategy and one of our most exciting markets. It has a mature transport ecosystem, high urban density, and a rapidly ageing population, creating a strong need for efficient, tech-driven mobility solutions.
What also sets Japan apart is the strong appetite for high-quality, optimised services, especially in sectors where labour shortages are becoming more pronounced. We’ve found that developed markets like Japan, where operational efficiency is critical, tend to see greater value in our optimisation technology.
We’re also actively exploring other developed markets with similar infrastructure and demographic dynamics, where we believe we can deliver the same level of impact.
What does success look like for SWAT in Japan over the next 12-24 months?
We currently have operations in over 70 areas in Japan. Our aim is to be able to triple that in 12-24 months.
We’ve also expanded our product offering to the logistics sector with a Dispatch Management System designed to address complex last-mile challenges. Our solution helps tackle issues related to the “Japan 2024 Problem,” which limits driver overtime hours, as well as the new Logistics Efficiency Act aimed at promoting sustainability. Our technology helps logistics companies improve operational efficiency while ensuring compliance with these evolving regulations.
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What does your expansion into Japan say about the capabilities of Southeast Asian startups in solving global-scale infrastructure problems?
Japan is often seen as a challenging market for foreign entrants, especially startups. While established companies have traditionally played a leading role, there’s a growing openness to innovative startups, creating new opportunities for Southeast Asian businesses. That is why our expansion in Japan is a meaningful milestone, not just for SWAT, but for startups across the region. Navigating language and cultural differences has been a valuable learning experience, helping us grow and become more competitive globally.
What are some learnings from Japan that could be applied back to Southeast Asia or other regions that SWAT is exploring?
Collaborating with clients in Japan has been incredibly valuable for our growth. The market strongly emphasises precision, consistency, and high-quality service—traits that have helped us refine our software and operations in meaningful ways. These enhancements have improved our work in Japan and strengthened our capabilities across Southeast Asia and other regions we’re entering.
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