San Francisco-based food delivery, and transportation network company, Uber recently announced that it has won over the Japanese government as the company will start its first taxi-hailing service in Japan on Awaji Island in Hyogo Prefecture in a step toward a full-fledged entry into the country’s huge taxi market.
It’s a generally little win for Uber, as it won’t be permitted to set up its own fleet of drivers and it must keep on obeying local rules, however, the financial details of the partnership were not unveiled.
Uber’s chief business officer for international operations, Brooks Entwistle said, “Even though it may seem quite small … as a place to start, we don’t think about it that way because this is just a beginning of what’s going to be years and decades of continued growth here in Japan as we bring what we think is world-class technology in transportation business here.”
The ride-hailing giant in talks with 20 taxi companies nationwide for business tie-ups and anticipating the latest move will provide insights as it looks to expand ahead of the 2020 Tokyo Olympics.
Further, Brooks added, “We really view this Japan market as one of the biggest strategic priorities for Uber globally as we spend the next couple of years preparing for and ideally going through an initial public offering.”
Uber offers its service to limousines in Tokyo involving private vehicles is challenged by domestic regulations. Uber’s service is only allowed in the limited locations like Kyoto and Hokkaido.