This paper focuses on the potential role of Flexible Transport Service (FTS) in low and dispersed demand area. In Japan, after the deregulation in 2002, some mass transit companies left from bus services in local areas. This causes problems to some older people and disabled people with difficulties on traveling in rural areas. To meet these needs, the term demand responsive transit (DRT) has been increasingly applied because it can provide passengers with alternative options on route, schedule, at a lower operating cost compared to the infrequent fixed route local public bus services. DRT needs, however, a quite large subsidy for the low density area and is not so popular for elderly people because of it’s level of service. On the other hand, Taxi Subsidy Scheme (TSS) that subsidizes on the taxi fare is being carried out widely by local authorities in Japan to support the special groups’ transport needs. In this research, we aimed to examine the role of taxi subsidy system from the relation with on demand ride-sharing taxi in depopulated area
