Japan’s First Industry-Government-Academia Demonstration of AI-powered On-Demand Mixed Freight and Passenger Transport- "Mile One Project" Implements a Sustainable Regional Transportation and Logistics Model -

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; President and CEO: Shingo Ueno), Seino Holdings (Head Office: Ogaki City, Gifu Prefecture; President and CEO: Yoshitaka Taguchi; hereinafter "Seino HD"), DAISHINTO Inc. (Head office: Koto-ku, Tokyo; President and Representative Director: Tetsuyoshi Morishita; hereinafter "Daishinto") and REA Inc. (Head office: Chuo-ku, Tokyo; President and CEO: Keijiro Sakata; hereinafter "REA") have been selected for a "Co-Creation Model Demonstration Project" by the Ministry of Land, Infrastructure, Transport and Tourism. Starting October 1, 2025, demonstration testing will begin of "Mile One," a regional mobility service that combines AI on-demand systems and shared delivery and passenger transportation in Toyota-cho, Shimonoseki, Yamaguchi Prefecture. This represents Japan's first industry-government-academia collaboration of this kind.

The Mile One Project: Solving Local Social Challenges through the Power of Mobility

Throughout Japan, there are fewer passengers of public transportation, and goods vehicle drivers are in short supply, making it difficult to maintain services. This also limits transportation available for daily activities such as shopping and hospital visits, affecting the lives of residents and regional economies.
Mile One is a new regional mobility service that combines an AI driven on-demand transportation system with options for integrating goods delivery and passengers in the same vehicle. By optimizing real-time vehicle dispatch in response to user reservations through AI, the service aims to provide a sustainable local service by enabling efficient operations with fewer vehicles and drivers.

Co-Creation Model Demonstration Project in Shimonoseki City

In Toyota-cho in Shimonoseki, four "Lifestyle Bus" routes are currently operating according to a timetable, with reservations made by phone. To make public transportation user-friendly for residents, including elderly citizens, an "AI on-demand function" was introduced.
As more residents lose access to shopping—largely due to an aging population voluntarily giving up their driver's licenses—this project offers a solution by combining goods delivery and passenger services. A single vehicle transports passengers while simultaneously delivering groceries and other goods directly to residents' homes. The impact of this project will be measured in partnership with Shimonoseki City University. We will define impact assessment criteria and methodologies tailored to local circumstances, then implement improvements based on quantitative data and user surveys/interviews. Through this approach of integrating transportation and logistics while driving continuous improvement through impact assessment, we aim to establish a new service model that supports daily life from both mobility and shopping perspectives. It provides convenience through collaboration with existing operators in the transportation and logistics service sphere, providing out-of-area transportation and deliveries to meet individual needs.
The demonstration period is scheduled to last six months, from October 1, 2025, to March 31, 2026. Taking this initiative in Toyota-cho as the starting point, the program is planned for nationwide expansion in the future.

Shimonoseki City	:	Implementation and Operation of the Project
Fuji Daiichi Transportation Co., Ltd.	:	Operator (commissioned by Shimonoseki City)
Sumitomo Corporation	:	Overall supervision and development of the Mile One service and system
Seino HD	:	Establishment of the Mile One service Logistics scheme (operational support, service promotion and advice on operation of the system, based on experiences in other regions)
Daishinto	:	Establishment of the Mile One service human mobility scheme (operational support, service promotion and advice on operation of the system, based on experiences in other regions)
REA	:	Development, maintenance and operation of AI driven on-demand vehicle transportation system

Cooperating agencies and organizations other than those listed above

Shimonoseki City Social Welfare Council	:	Promotion of the service to local residents
Shimonoseki City University	:	Cooperation in impact assessment
Toyotashimo Children's Club / Nishiichi Children's Club	:	Cooperation in vehicle wrap design
Co-Op Yamaguchi (Coop Cocoto Shinshimonoseki)	:	Development of a community shopping assistance service
youme Mart Kitakyushu (youme Mart Toyota)	:	Development of a community shopping assistance service
Marukyu Co. Ltd. (Sun Mart Toyota Store)	:	Development of a community shopping assistance service
Yamaguchi Prefectural Government	:	Support for expansion of this project to other municipalities

* Through collaboration between diverse organizations, a management system is being built for the demonstration that takes the voices of local residents into account.

Leading Private Sector Business Models in Yamagata Prefecture

As part of this project, Yusa in Yamagata Prefecture has been running a demonstration test of a private business model in collaboration with a local supermarket, Green Store, since March 2025.
While picking up and dropping off customers for shopping, extra time and vehicle space is used to deliver online supermarket products alongside other corporate deliveries, integrating goods delivery and passenger transportation while addressing issues affecting how people shop today.
The experience gained from these precedents will be used to build a co-created model through collaboration between industry, government and academia in Shimonoseki City.

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