Getting the "Immobile" Moving – Creating New Mobility Platforms Alongside Local Communities

Why is the Beyond Mobility SBU focusing its business development efforts on mobility?

Today, population decline and an aging demographic are making it increasingly difficult to sustain regional bus services and logistics networks in many parts of Japan. In the passenger transport sector, driver shortages and declining profitability in public transportation are accelerating service reductions and route discontinuations. As a result, in rural areas where dependence on private cars is high, more and more people are finding themselves unable to shop easily, while increasing numbers of elderly residents are struggling to access medical care.

In logistics as well, shortages of warehouse workers and drivers, combined with the impact of tighter regulations introduced in 2024, are causing delivery delays and rising costs. Regional SMEs and local retailers are being hit particularly hard, weakening local economic vitality. Someone once told me that "traffic is the bloodstream of a town" – a phrase that has stuck with me. Today, preserving that bloodstream has become a matter of survival.

What are the vision and mission of the Beyond Mobility SBU?

Our vision is to create new forms of mobility through technology, enabling people to live in ways true to themselves while supporting the sustainable development of local communities. Even in regional Japan, challenges differ greatly from one location to another. And within the same community, the needs of older residents differ from those of younger generations. Our mission is to respond to these individual needs while building business models that benefit local stakeholders. This is how we aim to contribute to the sustainable development of local communities.

What meaning is embedded in the name "Beyond Mobility"?

The word "Beyond" expresses our desire to surpass both existing domains and current timelines. In terms of domain, mobility includes not only today's cars, buses and taxis, but also emerging forms such as drones, flying vehicles and AI-equipped robots that are likely to become more widespread in future. We do not define mobility simply as a means of transportation. Rather, we see it as the full flow of people, goods, data and services in motion. By combining this concept with advanced technologies and industries, we aim to create entirely new forms of mobility.

At the same time, we also want to move beyond our present timeline. Rather than extending existing solutions incrementally, we want to work backward from an ideal future society and create entirely new business models.

What specific areas are you currently working on?

We are advancing projects along three main axes: automation and labor-saving, environment, and lifestyle. Under automation and labor-saving, this includes logistics warehouse automation using robots and AI, as well as autonomous driving initiatives. Regarding the environment, we support the introduction of EVs for bus and taxi operators, while also working on battery recycling and energy management to help realize a circular economy. For lifestyle initiatives, projects emerge more freely from team members' own ideas and are developed in collaboration with other SBUs and business units. Examples include AI-powered on-demand transport combining passenger and freight services*1,2, and community-based integrated care initiatives*3.

What do you consider especially important in developing new businesses?

What we value above all else is understanding the realities on the ground. What challenges are local communities actually facing? New business ideas begin by listening carefully to the answers to that question. When launching the AI-powered on-demand transport project in Shimonoseki, Yamaguchi Prefecture, which combines passenger and freight transport, project members themselves rode local community buses and spoke directly with passengers and drivers, asking what difficulties they were experiencing. Together with officials from Shimonoseki City, more than 80 resident briefing sessions were held, while carefully continuing dialogue with transport operators, local supermarkets and hospitals, constantly thinking about what kinds of services were truly needed.

What kinds of daily obstacles do you face in bringing new businesses into society?

Could you tell us about a representative sample of projects currently underway?

To address labor shortages in logistics, the use of AI and robotics is indispensable. For that reason, Sumitomo Corporation established a joint venture with Dexterity, a unicorn startup it invested in through its U.S. CVC operations. Through the venture, we're now advancing warehouse automation and labor-saving solutions using AI-equipped robots. Warehouse automation is progressing in Japan, but loading trucks has still largely depended on manual work by drivers. To address this, an innovative solution automates truck loading, and preparations are underway for deployment at domestic logistics centers.

Another example making use of advanced overseas technology is the retrofit EV bus project being pursued in partnership with the Nishi-Nippon Railroad ("Nishitetsu") Group in Fukuoka. Using technology from Taiwan's largest EV bus manufacturer, RAC, the project converts diesel buses currently in service into electric buses. The project has already moved beyond the experimental phase, currently being expanded in the Kanto region under another department's core business operations.

You also mentioned projects developed in partnership with local governments, such as the proof-of-concept trial in Shimonoseki, Yamaguchi Prefecture.

Yes, that is the proof-of-concept trial for "Mile One," which combines an AI on-demand transportation system with mixed passenger-freight transport. Based on reservations made by users, vehicles are optimally dispatched in real time, enabling both people and goods to be transported by a single vehicle. Through this project, we aim to provide a regional mobility service that is efficient while making both passenger movement and logistics sustainable.

Further, in Kumamoto, five organizations including Sumitomo Corporation are working with the city government on a Level 2 autonomous bus proof-of-concept project as a public-private initiative. In Osaka, meanwhile, we are working with Nagoya University and local driving schools on a proof-of-concept project for elderly driver support solutions using mobile robotic systems.

In conclusion, what are your aspirations moving forward?