Can Uber and Didi Chuxing take Japan for a ride?
Tokyo has banned ride-sharing services and its fabled transport system means there’s limited demand for them anyway. Even so, Uber and Didi Chuxing are keen to gain a foothold in the world’s third-largest economy
Even when you’re one of Japan’s richest tycoons, life can be frustrating.
Take SoftBank Group chief executive Masayoshi Son, for example. He might be worth nearly US$22 billion, having recently topped Forbes’ rich list for the country, but even with all that wealth and influence he doesn’t always get his way. At least, not when it comes to ride-sharing.
“Ride-sharing is prohibited by law in Japan. I can’t believe there is still such a stupid country,” Son, 61, said at a recent annual SoftBank event.
It’s easy to see what has got Son flustered. SoftBank’s investment arm, the nearly US$100 billion Vision Fund, has invested in various ride-sharing companies including San Francisco-based Uber, China’s Didi Chuxing, India’s Ola, 99 in Brazil, and Singapore’s Grab.
Yet unless the ban is lifted, the expansion of Son’s portfolio in his home country – the world’s third-largest economy – will be muted. For now, the likes of Uber and Didi are limited to providing hailing services for licensed taxi companies, as Japan bans private vehicles – the backbone of most ride-hailing services – from being used as taxis.