Japanese taxi firm Hinomaru Kotsu Company has begun trials of a self-driving taxi carrying fare-paying passengers this week in collaboration with Tokyo-based technology company ZMP Inc, according to reports in Japan.

These current trials are scheduled to run until 8th September, with the company targeting launching the service commercially by the time Japan hosts the Olympic Games in 2020.

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This is thought to be the first time an autonomous taxi has been used commercially to carry fare-paying customers.

The compact MPV fitted with sensors and other self-driving technology has been put into service on a route between Tokyo's Otemachi and Roppongi districts, which are over 5km apart.

The trials comes as news emerged that Toyota is set to invest US$500m in a partnership with Uber to develop autonomous vehicle technology and services, while General Motors, Google's Waymo and Nissan have also carried out separate road tests this year.

In the ZMP-Hinomaru trials, the vehicle starts, stops and turns automatically, but a driver and assistant are onboard to intervene if needed. Passengers that have been briefed in advance by the company will open the door and make payments through a smart-phone app for single journeys costing JPY1,500 (US$13.50).

The taxi company and its technology partner see significant opportunities for self-driving taxis in a country where there is a shortage of drivers, particularly in smaller cities and towns, due to the ageing populations.

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