Uber Claims Top Spot in Japan's Ride-Hailing App Market, Plans $2 Billion Investment Over Next 5 Years

Andrew Macdonald, President and COO of U.S. transportation network company Uber, revealed that Uber has overtaken competitors like GO to claim the number one market share position in Japan's ride-hailing service market as of April 2024.

According to Kyodo News, this market share data was derived from credit card payment statistics. Macdonald announced that Uber will invest over $2 billion (approximately NT$63.2 billion) in Japan over the next five years. The investment will be used to increase driver numbers, advertising, and promotional activities.

Speaking in a New York interview with Kyodo, Macdonald attributed Uber's market growth to attracting inbound tourists and strengthening partnerships with local taxi companies. He emphasized that Japan is an "extremely important market," and stated that Uber aims to become an "indispensable presence" for Japanese consumers in both ride-hailing and food delivery services.

Uber also expressed its intention to contribute to Japan's economy by enhancing app convenience to help address social challenges such as aging populations. Specifically, in underserved areas known as "transportation deserts," Uber will assist local governments in introducing "compensated passenger transport services using private vehicles."

According to Japan's Ministry of Land, Infrastructure, Transport and Tourism, "transportation deserts" refer to regions where public transportation is lacking or extremely difficult to access, creating mobility challenges. The "compensated passenger transport service using private vehicles" allows municipalities or non-profit organizations, after local consultation and registration under the Road Transport Act, to operate transport services where traditional bus and taxi operators cannot easily provide coverage.

Additionally, Uber plans to launch a pilot program for autonomous ride-hailing taxis in Tokyo in the second half of 2025, in collaboration with Nissan Motor Co., Ltd.