Uber Technologies Inc has finally found a partner for its cab-hailing program in Japan, one of the world\u2019s largest taxi markets.<\/p>\n
The San Francisco-based company struck a deal with the Fuji Taxi Group to let users hail cabs through its app in Nagoya, Japan\u2019s third-most populous city.<\/p>\n
Uber gets an unspecified cut of all fares, which will be based on standard rates required by regulators. Their agreement initially covers more than 350 cabs, a big portion of the Nagoya-based operator\u2019s fleet that amounts to about 5% of the city\u2019s cabs.<\/p>\n
The deal comes months after Uber boss Dara Khosrowshahi pivoted his Japan strategy toward partnering with taxi companies instead of fighting regulators who\u2019ve outlawed ride-sharing.<\/p>\n
The agreement with Fuji Taxi, unveiled Thursday, will serve as a template for deals with other cab operators throughout the $16 billion Japanese taxi market.<\/p>\n
\u201cOnce people see certain companies come on the platform and see us get jurisdictions, excitement builds, people want to join that and word gets out,\u201d Brooks Entwistle, head of Uber in Asia, said in an interview ahead of the announcement.<\/p>\n
\u201cThat\u2019s what we\u2019re trying to get with momentum around that.\u2019\u2019<\/p>\n
Uber has clashed with taxi operators and regulators worldwide, but in Japan it\u2019s largely played by the rules since launching in Tokyo four years ago.<\/p>\n
With the country outlawing unlicensed ride-sharing, that\u2019s relegated Uber to offering a high-end limousine service and the food-delivery business UberEATS.<\/p>\n
The ride-hailing giant has been on the back foot in international markets since pulling out of China, Russia and Southeast Asia. Japan could offer a rare bright spot for its global business ahead of an initial public offering expected next year.<\/p>\n
Tourism is expected to surge and peak around the 2020 Olympic Games in Tokyo.<\/p>\n
It isn\u2019t the only technology company courting Japanese taxi companies.<\/p>\n
Chinese rival Didi Chuxing has been in discussions since last year with taxi operators about making it easier for tourists to hail cabs in Japan, while Sony Corp unveiled an alliance with six taxi companies to develop a ride-hailing app that could cover more than 10,000 taxis in the greater Tokyo area.<\/p>\n
From Thursday, Uber\u2019s app will work in Nagoya pretty much the same way as elsewhere, except users will see taxis that they can order up on demand.<\/p>\n
Besides that deal, Uber has also begun experimenting with taxi-hailing on Awaji, an island in western Japan. It hasn\u2019t disclosed the financial details of that pilot program, which involves about a dozen cab companies.<\/p>\n