After facing protests in the UK and Germany and learning from other companies like OLA, Uber has realized the importance of partnering with government bodies and local taxi companies. Uber’s strategy in Japan is a retreat from a “standalone rapid expansion” to a slow, partnership-based expansion, based on market understanding.
This is the right approach from the new CEO Dara Khosrowshahi, who cannot afford to risk $16-$17 billion Japanese taxi market, among the largest in the world, especially after Uber’s exit from China and other Southeast Asian countries. Starting small will also help Uber to understand local customers well, a skill mastered by Grab. Dara Khosrowshahi’s enthusiasm for Japan echoes with that of Brooks Entwistle, Uber's Asia head, who commented that Japan would be the major focus for Uber in 2018. This is a turnaround from previous CEO Travis Kalanick, who largely left the country’s business in the hands of a country manager. Sony, Nihon Kotsu, and Didi Chuxing are the major competitors of Uber in Japan, all offering some variations of taxi-hailing services in the country. – Aman Madhok
