(Bloomberg) – After six years in Japan, Uber Technologies Inc. finally arrives in Tokyo.
Starting Friday, users in the Japanese capital will be able to take taxis using the Uber app, according to Tom White, who heads the company’s operations in the country. Uber is partnering with three local taxi operators to make 600 cars available primarily in the city’s central business district and popular areas of Shinagawa, Akihabara, and Asakusa.
The American company has done things a little differently in the world economy # 3, which has strict regulations covering carpooling. The San Francisco-based company has focused on growing its food delivery business, which now encompasses around 25,000 restaurants in 20 prefectures. For travel, he has created partnerships with taxi companies in provincial cities, including the popular tourist destinations of Kyoto, Osaka, and Hiroshima. In Tokyo, its offer has been limited to black car rentals so far.
“We wanted to do it well, having learned lessons in smaller markets,” White said in an interview. “We are in a better position not only to provide good service to passengers, but also to have long-lasting relationships with taxi companies.”
In Tokyo, Uber is partnering with Hinomaru Limousine Co., Tokyo MK Corp. and Ecosystem and is in talks with more operators, White said. The objective is to extend coverage to all the central districts of the capital by the end of the year. That brings the total number of Japanese cities where the service is available to 12.
Despite regulatory challenges, Japan has only grown in importance for Uber. After years of costly battles, the transportation giants have struck deals to stay out of each other’s core markets. In 2016, Uber ceded China to Didi Chuxing in exchange for a stake in his former rival. It similarly withdrew from Russia the following year and sold its Southeast Asian operations to Grab in 2018. That left few growth deposits untapped.
Despite being the second largest taxi market in the world, generating some $ 15 billion in annual revenue, most locals in Japan still take a taxi pointing to one on the street. The apps are used for less than 5% of the attractions, White said. Others have also seen the opportunity. Sony Corp., startup Japan Taxi and China’s Didi are among those that have launched competing taxi apps.
“We are very still in the early days,” White said. “There is still a great opportunity in this market. And the success of Uber Eats shows that people are open to the brand. “
(Corrects the size of the Japanese market in the penultimate paragraph)
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