Uber aims to win Japan’s heart through its stomach | HT Tech

Uber aims to win Japan’s heart through its stomach

The US technology firm is innovating in a bid to establish its brand in Japan, although it is tight-lipped about when it expects to be able to offer ride-hailing services in the country’s major cities.

By: TOKYO
| Updated on: Sep 28 2016, 13:31 IST
image caption
The US technology firm is innovating in a bid to establish its brand in Japan, although it is tight-lipped about when it expects to be able to offer ride-hailing services in the country’s major cities. (Reuters)

Uber Technologies on Wednesday said it will launch a food-delivery service in Japan as it looks for new ways to enter a potentially massive market where its ride-hailing service has been blocked by regulation and opposition from taxi drivers.

The US technology firm is innovating in a bid to establish its brand in Japan, although it is tight-lipped about when it expects to be able to offer ride-hailing services in the country's major cities.

You may be interested in

MobilesTablets Laptops
28% OFF
Samsung Galaxy S23 Ultra 5G
  • Green
  • 12 GB RAM
  • 256 GB Storage
Google Pixel 8 Pro
  • Obsidian
  • 12 GB RAM
  • 128 GB Storage
Vivo X100 Pro 5G
  • Asteroid Black
  • 16 GB RAM
  • 512 GB Storage
Apple iPhone 15 Plus
  • Black
  • 6 GB RAM
  • 128 GB Storage

"Uber believes Japan is an important market, and if it can demonstrate success in Japan, it can go into other Asian countries with momentum," said Brian Solis, digital analyst at Altimeter Group in San Francisco.

Also read
Looking for a smartphone? To check mobile finder click here.

The launch of food-delivery service UberEats in Japan will give Uber a slice of a market which almost doubled in 2014 to 1.9 trillion yen ($19 billion), according to Yano Research Institute.

Read more: Uber drives out of China, to sharpen its focus on India

Job listings on Uber and other recruiting sites suggest UberEats is planning to enter at least 22 new countries across the world in the near future, on top of the six countries where it already operates.

Its launch in Japan comes after the firm started two ride-hailing pilot services for elderly people in rural towns earlier this year. Japan's ageing population makes it an attractive prospect for ride-hailing companies.

But Uber is still a long way from expanding its ride-hailing services into big cities, thanks to regulations outlawing non-professional drivers from transporting paying customers, as well as opposition from the powerful taxi lobby.

In Tokyo, Uber operates as a travel agent, connecting users to established taxi company drivers.

IN THE MIX

Food delivery and the pilot ride-hailing projects would provide valuable information about customer preferences and traffic conditions as Uber looks to expand its logistics businesses in Japan.

They are part of a broader strategy to offer more diverse services rather than focusing almost exclusively on ride-hailing, analysts said.

Read more: Noida: Uber cab rams truck, DU student from Miranda House critical

"Uber seems to be getting smarter about the mix of services they will offer in various parts of the world, in response to cultural differences, regulation, and competition," said Jan Dawson, chief analyst at Jackdaw Research in Utah.

"It seems to be less willing to simply barge into new markets while ignoring regulations or objections than in the past."

Uber Japan President Masami Takahashi said the company would like to "build on initiatives" like the pilot ride-hailing projects and UberEats, although he declined to say when Uber hoped to launch ride-hailing services in major cities.

Catch all the Latest Tech News, Mobile News, Laptop News, Gaming news, Wearables News , How To News, also keep up with us on Whatsapp channel,Twitter, Facebook, Google News, and Instagram. For our latest videos, subscribe to our YouTube channel.

First Published Date: 28 Sep, 13:30 IST
NEXT ARTICLE BEGINS