When I tried using Uber in Tokyo, I was only able to call a licensed taxi through the app, which was incredibly expensive. The one time I actually needed a taxi (in a tiny town in Tohoku) I had to walk around hoping to physically hail one (getting a SIM card that can make phone calls is apparently very difficult in Japan, so I didn't have one).
Uber is not allowed to compete in Tokyo. When you use Uber, it just calls a normal licensed taxi. The advantage is presumably the fact that it shows your destination to the driver without you having to explain it, but for locals there's literally no advantage.
Japan’s taxi companies just banded together and made an Uber like app to call taxies (including paying ahead, so you know exactly what it’s going to cost).
I never need to take an uber any more. The cars and drivers are all professional, and they’re often closer than any Uber.
They (Uber) solved it by completely dominating the food delivery landscape with Uber Eats.
I've used JapanTaxi (mentioned in the article) a fair number of times, and while there's nothing wrong with the experience of the app, oftentimes the biggest competitor to these ride-hailing apps is the fact that Tokyo's roads are so densely populated with taxis cruising everywhere that it's often faster to just hail one passing by than to open an app on your phone.
I feel the Uber service itself has a sort of a 'premium' feeling around it in Japan, with the cars/staff/pricing being higher-class than the run-of-the-mill taxis you can hail. As such they don't seem to be used too often. I only use Uber/Lyft when traveling to the US; In Japan I come into contact with the brand much more often from the context of Uber Eats.
Japan and the Japanese as a society are very into following the rules and rebellion and standing out is frowned upon so the general MO of Uber wouldn't have worked there.
Given that offering a universal way to book a taxi is the best thing they could have done.
Not to mention by the looks of it taxi cab services there are way ahead of their peers in the US launching their own apps etc.
When Uber came to Japan, they pushed heavily on their three main points:
- Uber is convenient.
- Uber is safe.
- Uber is clean.
Japanese taxis are (a) everywhere; (b) probably about the safest form of transport that doesn't have armor plating; and (c) likely cleaner than a Blue Cross operating theater.
Moreover, ride-sharing is a non-starter in Japan. People in cities... don't own cars. People outside the city... already have a car.
About 3 years ago I've had issues multiple times in Tokyo with taxi drivers not speaking english at all, thus not being able to communicate the destination. I assume Uber would smooth over that aspect as there is literally no need for communication.
Uber has not been successful in Japan for many reasons. 1) the public transportation system is excellent. 2) the taxis are ubiquitous in the major metro areas. 3) the taxi companies have worked together to compete against Uber Japan successfully (Japan Taxi app, etc.)
Uber and other type apps are successful disrupting traditional taxi services where a heafty price tag is on medallions.
Where countries like Japan who do not have a medallion system really, there is not much to drive prices up for taxi fares for Uber and like to undercut to be successful.
A good taxi and transit system isnt everything... I live near YVR, we have taxis lined up at YVR for convenience.
You are also paying way more cause first, the taxi medallions are so expensive... Then there additional fees for being licensed to do pickups at YVR in the designated area.
Everyone I know who commutes via taxi or transit wishes Uber types were here (banned).
Especially when u fly to DFW and the only options for a taxi is a broken minivan 20 mins later.
And then Uber being less than half and a lot quicker.
Convenience and cost. If Japan has those covered, then no reason for a Uber type to be operating there
Does Uber guarantee English-speaking drivers in Japan? I mean, that hardly seems important when the usual taxi companies carry around lists of common phrases you can point at, and you only have to say a destination landmark.
Riding Narita into Tokyo in a taxi just seems so inefficient anyway (for <4 people). One Google Maps printout saves you tens of thousands of yens.
Not to mention that there is generally a line of taxis outside of most Japanese train stations and office buildings, ready to go at a moment's notice. Uber is actually slower, because the taxis are already right where you are.
I don't use uber, or any other taxi app. Depends a lot on where you live and whether public taxis and public transport infrastructure is well developed. I can imagine this would be a nightmare in the USA, it was when I lived there pre-Uber days, waiting for a bus could take 45 mins. Out here in Asia, Tokyo, Singapore, Hong Kong etc, there really isn't a big need for Uber, sure it's useful, but plenty of alternatives that are just as convenient.
In Europe (at least the UK and Germany) it seems to be the opposite. Outside of a big-city Uber is non-existent and you are relying on local taxi-firms.
The article has a point but didn't get it right. I'm a startup developer and my family runs a taxi business in Japan, and believe me I thought about making Uber for Japan the moment I heard about Uber, but I realized it's not going to work out. Here are my notes I jot down at that time.
1) People don't drive
In US everyone drives, in fact you need one. But you see none of my friends in Japan own a car. The only people who owns one are people that are well offed. This is because owning a car in Japan is expensive (there is thing called ??), a hassle (no parking), and getting a driver's license is long and hard. Supply is low.
2) Cash
In Japan most people still carry cash. Their preferred method of payments (in order) are: cash, Suica (debit card for train), and then credit card tied with NFC in phone that charges your phone bill. So Taxis are more convenient than Uber.
3) Part-time jobs are everywhere
You see it's very easy to get a part-time jobs. In fact most college students are doing it all the time. In US Uber looks attractive "I can drive and make money!", but in Japan it is "I just have to go to that place that dispatch part-time jobs and will make money".
4) Zoning
This is a bit similar to what the article talks about but in a different perspective. Don't forget that Japan fits in California. Each city have its own law and you need to pay a lot for each zone. My family operates in one district and have 2 competitors. Other district have its own. Each city have its own market and demand. You can't even pilot in a small region because if you drive 15 minutes you are already in another district, which you are not allowed to pickup. These zoning are strict, and japanese people know about it. It existed from the day yakuza used it as protection fees.
5) Anybody can be a taxi driver
You see its not hard to be a taxi driver if you really want to be one. These are called ?????? and can operate on your own.
Uber did not just offer cheaper taxis. A taxi company has staff and cars that cost money to own, run, and maintain which effectively means a taxi company any never meet peak demand and make a profit.
Uber can meet demand since they don't own the cars nor the staff. The system automatically scales, something taxis can't do.
That is the innovation, not apps. Plenty of taxi companies all over the world had apps before Uber even existed.
If you had a phone and Internet to call Uber, you also had a map. Of course, I don't deny that it's much simpler with Uber or a taxi app, but telling that Uber is the only mean to get a taxi in a foreign country is like telling that people couldn't eat before inventing a spoon.
If your cab can’t be hailed with an app, tracked to arrival, provide an estimate, pre paid etc - then the problem is that the cab regulators and cab companies in that particular city are bad. It’s certainly not something inherent to taxi, it’s just that in some cities with outdated regulation (for example most US cities it seems) the service sucks and hasn’t improved in years.
Where I live there is no difference between taxi and Uber. For example, I could hail my taxis with an app ten years ago (note: before Uber even existed!).
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