Uber struggles to make inroads into Japan

AFP, TOKYO: Uber may be shredding business models for taxi firms the world over but it is struggling to make inroads into Japan, where risk-averse passengers prefer to stick to their high-quality traditional taxi service.

Japan, with its wealthy customer base and megacities like Tokyo, should represent rich pickings for Uber.

In 2015, the national market for taxis had a turnover of 1.73 trillion yen ($15.2 billion), according to transport ministry data.

There are 50,000 taxis in Tokyo alone—instantly recognisable with their impeccable polished exteriors and doors that open automatically to let valued customers board effortlessly.

And with hailing a taxi rarely taking more than a few seconds in the major cities, there has been sluggish take-up of Uber, where consumers order an unlicensed car via smartphone.

“Japanese people don’t like taking risks, they are risk averse. They are quite strict when it comes to the quality of service,” said Ichiro Kawanabe, CEO of Nihon Kotsu, the main Tokyo taxi firm founded by his grandfather in 1928.

Given this, “when Uber tried to messily enter the market, no one wanted them”, Kawanabe, who is also chairman of the Japanese taxi federation, told  the news agency.

 

Uber struggles to make inroads into Japan

AFP, TOKYO: Uber may be shredding business models for taxi firms the world over but it is struggling to make inroads into Japan, where risk-averse passengers prefer to stick to their high-quality traditional taxi service. Japan, with its wealthy customer base and megacities like Tokyo, should represent rich pickings for Uber. In 2015, the national market for taxis had a turnover of 1.73 trillion yen ($15.2 billion), according to transport ministry data. There are 50,000 taxis in Tokyo aloneinstantly recognisable with their impeccable polished exteriors and doors that open automatically to let valued customers board effortlessly. And with hailing a taxi rarely taking more than a few seconds in the major cities, there has been sluggish take-up of Uber, where consumers order an unlicensed car via smartphone. Japanese people dont like taking risks, they are risk averse. They are quite strict when it comes to the quality of service, said Ichiro Kawanabe, CEO of Nihon Kotsu, the main Tokyo taxi firm founded by his grandfather in 1928. Given this, when Uber tried to messily enter the market, no one wanted them, Kawanabe, who is also chairman of the Japanese taxi federation, told the news agency.