japan's 'taxi prince' fights to keep uber at bay
It's impossible for Ichiro Kawanabe to order up an Uber in Japan. The ride-hailing company has banned him from having an account.
That's not a problem, though, because he rarely has trouble getting around; Kawanabe runs Nihon Kotsu Co., Tokyo's biggest taxi company.
Visitors to the archipelago know that hailing a cab here is a unique experience. Taxis are easy to find (when it's not raining) and usually offer impeccable service, from automated doors to glove-wearing drivers eager to get passengers to their destination.
Even though fares are among the priciest in the world, stringent regulations and top-notch services have kept Uber Technologies Inc.'s market share at less than 1 percent of monthly rides in Tokyo, according to data from a person with knowledge of Uber's business and figures from the Japan Federation of Hire-Taxi Associations. Now that SoftBank Group Corp. unveiled plans this week to invest in Uber, the dynamics could change, including a more aggressive push by the ride-hailing company.
Before that happens, Kawanabe is aiming to shake up his own ¥1.72 trillion ($15 billion) industry, with a taxi-hailing app and plans to offer fixed-rate pricing and carpooling. So far, his ambition earned him Uber's wrath and a place on its blacklist.
"We're using Uber as an example of what not to do," Kawanabe said, citing examples of the company's battles with regulators, drivers and string of scandals. Kawanabe said he was unable to create an account under his name, and got no response from Uber when he asked why. "They're making too many enemies. I just don't like that kind of corporate culture."
Kawanabe, 47, is taxi royalty. His grandfather, who founded Nihon Kotsu in 1928, prepared him from an early age, telling him that he would inherit the family business. "He brainwashed me," Kawanabe said. "I never doubted that I would run the company someday."
After getting an MBA from the Kellogg School of Management and a stint as a McKinsey & Co. consultant, Kawanabe found himself running the enterprise sooner than he anticipated, when his father passed away a decade ago. Young, full of ideas and married to the granddaughter of former Prime Minister Yasuhiro Nakasone, Kawanabe was dubbed the "Prince of Taxis" by local media.
Since delegating day-to-day operations to a hired president, Kawanabe says he now spends 80 percent of his time at Japan Taxi Co. --- the startup he established to build smartphone applications and dream up new services. He's also the chairman of the taxi federation, giving him a platform to push for changes in the staid industry. "I wear jeans to Japan Taxi, and a suit the rest of the time," he said.
If Kawanabe seems relaxed, that's because Uber isn't a serious threat to Nihon Kotsu and other incumbent fleet operators. The San Francisco-based company has fought taxi companies, driver unions and regulators in the U.S. and Europe, but is playing by the rules in Japan.
There are specific regulations for commercial passenger businesses, including on how to set fares and even where to place signage inside and outside a vehicle. Drivers have to obtain a commercial license by passing an exam and a road test. Unlicensed, privately operated vehicles and drivers are forbidden.
Fire up the Uber app in Japan and there are usually a few cars nearby. Leave central Tokyo, or nearby Yokohama, and they're non-existent. In fact, anyone summoning an Uber ride is getting a car or van that's operated by an existing, fully licensed car-hire company. Essentially, Uber in Japan's big cities is a dispatch service for an established fleet operator, not the cheap ride-sharing for which it's best known.
News On Japan - Nov 25
Nissan Motor Corporation has announced plans to transition all its vehicles produced in the United Kingdom to electric vehicles (EVs).
News On Japan - Nov 24
The amount of undeclared income by wealthy people in Japan has reached a record high of 98 billion yen, among the worst offenders being scrap gold wholesalers, breeders and yakiniku restaurants, the National Tax Agency announced on Friday.
NHK - Nov 24
Japan's latest inflation figures show prices rose on a broad front in October. The month marked the first time in four months for inflation to accelerate.
NHK - Nov 24
Tokyo has a new landmark, a 330-meter-high skyscraper that opened on Friday. The Mori JP tower has 64 floors for shops, offices and residences. It's the tallest building in Japan, a title that previously belonged to the Abeno Harukas commercial and business tower in Osaka, western Japan.
Reuters - Nov 24
Japanese stocks witnessed massive foreign inflows in the week ended Nov. 17, underpinned by strong corporate earnings and as investors tempered some of their initial enthusiasm about the prospect of a series of U.S. interest rate cuts.
theceomagazine.com - Nov 24
Shitennō-ji temple is one of Osaka’s most important Buddhist temples. Built in the sixth century during the rule of Prince Shotoku, it has stood firm as the high-rises of the modern-day city have towered above it.
News On Japan - Nov 23
Danish pharmaceutical giant Novo Nordisk's anti-obesity drug "Wegovy" is now covered by Japan's public health insurance scheme. Doctor's, however, are concerned about the long-term effects of this highly addictive weight-loss treatment, and whether worldwide supply shortages will stop it getting into the hands of people who need it most.
carscoops.com - Nov 23
Toyota's Chairman and Master Driver Akio Toyota retires from his position as the chairman of the Japan Automobile Manufacturers Association (JAMA) which represents 5.5 million employees from 14 automakers. Toyoda is the only official who led Japan's automotive industry for three two-year terms, being appointed in 2012, 2018, and 2022.
acs.org - Nov 23
Japan’s three biggest chemical companies are seeing their earnings suffer from a slump in basic chemicals. All three experienced a sharp drop in profits in the first half of fiscal 2023, which ended Sept. 30, and one of them, Sumitomo Chemical, is forecasting a loss of $655 million for the full fiscal year.
newsonjapan.com - Nov 23
As the world leans into digital convenience, Japanese companies are not left behind in the digital transformation of payroll processing.
Reuters - Nov 22
Japanese chip materials maker Resonac (4004.T) said on Wednesday it will set up a research and development centre for advanced semiconductor packaging and materials in Silicon Valley.
News On Japan - Nov 22
Toshiba, aiming for corporate restructuring, held an extraordinary general meeting of shareholders on Wednesday, the final step towards delisting from the stock exchange.
Business Mirror - Nov 22
From manga artists to independent taxi drivers, Japanese freelancers and small businesses frustrated with the potential loss of a tax break are among the growing numbers pushing down Prime Minister Fumio Kishida’s approval rating to record lows.
ndtv.com - Nov 22
Tokyo offices are experiencing an unconventional approach to ease workplace stress. At a cost of 7,900 yen, roughly ₹ 4,400, people in Japan can access the services of Ikemeso Danshi, providing attractive companions referred to as "Handsome Weeping Boys."
News On Japan - Nov 21
Private companies are expected to exceed last year's winter bonuses for the third consecutive year, according to four private research firms, with an average payout per person rising between 2.1% to 2.5%.
News On Japan - Nov 20
The Azabudai Hills complex in Tokyo's Minato Ward, which includes Japan's tallest building, was unveiled to the media on Monday ahead of its opening on Nov 24.