Light passenger vehicles registration

On October 27th, 2022, Ministry of Land, Infrastructure and Transport (MLIT) has implemented a deregulation to allow the drivers of light passenger vehicles (Kei Joyosha) to make cargo delivery within the designated cargo weight limits (55 kg x seat capacity - number of passengers).

Uber Eats started opening the registration of light passenger cars to deliver the foods in Sapporo and Sendai as experiments.

From May 2, 2023, we start accepting the registration of the light passenger car from all the service areas of Uber Eats.

It will give you more opportunities such as longer-distance deliveries and deliveries under poor weather conditions.

You just need to follow 5 simple steps to unlock this exciting opportunity:

Step 1: Go to your local branch of the MLIT and obtain approval to conduct the Light Vehicle Transport Business.

  • Generally, you will be requested to submit below documents.
  1. Notification of Management of Light Vehicle Transport Business
  2. Notification of Fee Rate Setting and Fee Rate Chart
  3. Contact Form for Business Vehicles
  4. Vehicle Inspection Certificate (Shakensho) (Original or copy).
  • You can download these documents on the website of your local MLIT office, print and fill them out in advance, or ask for the format at the MLIT office.The details might differ slightly based on the branch, so please inquire your nearest branch for detailed questions.
  • Please visit our FAQ for tips on how to fill in the 2) Fee Rate Chart.

Step 2: Go to your local office of the Light Motor Vehicle Inspection Organization, and convert your number plate (yellow in color) to a business number plate (black in color). The Light Motor Vehicle Inspection offices are usually right next door to the MLIT branches.

  • Generally, you need below items for this process. Changing the license plate may cost between 1,500- 2,000 Japanese Yen, based on the prefecture you live in.
  1. Contact Form for Business Vehicles that got stamped at the MLIT office

  2. The original Vehicle Inspection Certificate (Shakensho)

  3. Your current license plate

Step 3: Call your automobile insurance company, if applicable. For the third-party liability insurance (Jibaiseki Hoken), the insurance payment will stay the same. We recommend updating the vehicle registration number (Sharyo Toroku Bango) but this is not mandatory. For automobile insurance, you may need to switch plans to use your vehicle for commercial purposes.

Step 4: After you obtain your new number plate, create a sign with your name that you can display on your dashboard or the door, where visible to the people outside. * It may be a sticker or a piece of paper taped on your dashboard. This is to demonstrate that the car is being used for commercial purposes, so no need to display the sign while you drive it for personal use.

Step 5: Go to this link, sign in to your existing account, and submit the following documents. Once completed, please contact support to change your Flowtype. * Driver’s license * Business license plate (black number plate) * Automobile third-party liability insurance certificate (Jibaiseki Hoken) * Automobile insurance certificate * Vehicle Inspection Certificate (Shakensho)

FAQs

1. Will I be able to sign up and deliver on the Uber Eats platform without converting my number plate to the business license?

  • No, anyone wishing to use their light passenger car for paid cargo delivery must obtain a commercial license as required by law.

2. Once I have the business number plate on my light passenger car, will I still be able to use it for my personal use?

  • Yes, you can keep using your light passenger car for personal use. You don’t need to attach the sign mentioned in question 11 when you drive the car for personal use.

3. How do I know if my car qualifies to obtain a business license? Where can I find detailed instructions on how to apply for the business license?

a. If your car is classified as a light car (Kei Jidosha, passenger or cargo), you may apply for the business license. The process will be the same for either light passenger car or light cargo car, but may differ slightly based on your regional Ministry of Land, Infrastructure and Transport (MLIT) office.

b. Please visit their website or contact them for further details.

4. Can I use a light passenger vehicle that I purchased with a loan?

  • As long as you obtain the approval of your loan company and submit the proof of entrustment (Shinsei Iraisho) at the Light Motor Vehicle Inspection Organization office. The same applies for leased vehicles.

5. Is there a difference in documents that MLIT or Uber Eats will check between Kei passenger (newly deregulated) and Kei cargo cars (which have been allowed to deliver cargo with a business license)?

  • The requirement on the part of the government and Uber Eats is the same. Uber Eats will check the type of the car by collecting the copy of your Vehicle Inspection Certificate (Shakensho) to ensure legal compliance.

6. Do I need a seal or resident certificate (Juminhyo) when I go to the MLIT branch or the Light Motor Vehicle Inspection Organization office?

  • No, they are not required. If you wish to obtain a business license for a car owned by somebody else, you must go through a process to change the owner’s name first (you may do this on the same day). For this case, you will need your own residence certificate.

7. Typically, how long does it take to obtain a business license?

  • If you have all the necessary documents, the application and approval of your commercial license will only take 1 day to visit your local MLIT office and the Light Motor Vehicle Inspection Organization. After obtaining the license, please ensure to also update your insurance plans and documents as needed.

8. How should I fill out the Fee Rate Chart?

  • While MLIT provides a format for Fee Rate Chart (pages 2-3) which specifies much detail, it is difficult in the case of Uber Eats delivery as the delivery fee is calculated for each trip based on various conditions and fluctuates constantly. After filling out the Notification of Fee Rate Setting using the format on page 1, we recommend using a blank piece of paper instead of the format on pages 2 and 3, and simply explaining the fee structure. Please refer to below as an example.

  • Example: Based on the contract with Uber, the delivery fee (including the delivery charges and promotions) will be agreed upon for each individual delivery based on comprehensive consideration of various factors such as estimated distance and time required for delivery, number of stops in the delivery, traffic conditions, unexpected delays and waiting time, market supply and demand conditions, and so forth. This results in a delivery fee of around xx yen to xx yen (Note: please fill this in based on your experience/ assumption. Please note that the amount here will not guarantee the equivalent payment from Uber).

9. I contacted my insurance company to update my automobile insurance to the business plan. Although I was able to, I was told that the document will say “private light passenger car” because they do not have “business light passenger car” in their system as of now. Will this get rejected in Uber Eats’ document check?

  • We trust that each insurance company is resolving this issue. As a temporary measure until they resolve it, Uber Eats will accept your application as long as the vehicle number on the insurance documents matches the business license plate number.

10. I am currently delivering using a bicycle/ motorcycle, and want to now start delivering using my car. What should I do?

a. First, go to this link, sign in to your existing account, and submit the following documents

  • Driver’s license
  • Business license plate (black number plate)
  • Automobile third-party liability insurance
  • certificate (Jibaiseki Hoken)
  • Automobile insurance certificate
  • Vehicle Inspection Certificate (Shakensho)

b. Next, please contact support to change your Flowtype.

11. To conduct the Light Vehicle Transport Business, there is a legal requirement to put signs on the vehicle that show the name of the business. How exactly should I comply with this regulation as an independent contractor?

a. Holding up signs is mandatory by law. It should not be the name of the food delivery platform but should be the name of the business owner (the individual’s name in the case of an independent contractor).

  • MLIT understands it is difficult for individuals to paint the name on the car. As long as the name is visible and it does not fall off easily, putting up a sign with a tape is acceptable.

  • MLIT recommends “(individual name) freight/ delivery business.”

  • WRONG Sign: “Uber Eats Delivery”

  • Suggested Sign: “ Delivery”

    • Example: “Ken Tanaka Delivery”, for someone whose name is Ken Tanaka

12. I am a foreign national and want to register on Uber Eats to deliver using Kei car. Do I have to follow any additional processes?

  • If you are a foreign national, in addition to following the process described above, please do refer to this webpage on specific additional steps to be followed by foreign nationals.

  • Please note that you will be required to visit one of the Compliance Centers even if you delivered on Uber Eats before on a bicycle/motorbike.

12. I am a foreign national and want to register on Uber Eats to deliver using Kei car. Do I have to follow any additional processes?

  • If you are a foreign national, in addition to following the process described above, please do refer to this webpage on specific additional steps to be followed by foreign nationals.

  • Please note that you will be required to visit one of the Compliance Centers even if you delivered on Uber Eats before on a bicycle/motorbike.

If this FAQ does not solve your inquiry or problem, we have a special support center set up for matters related to the Light Vehicle Transport Business. Please make a reservation from this link