Japan Clears the Way for Tourists to Get an Actual Uber

livemint.com:

TOKYO—One of the world’s biggest taxi markets is finally opening its gates wider to Uber after a decade of pushing by the U.S. ride-hailing company. Japanese Prime Minister Fumio Kishida said Wednesday that the government would largely lift a ban on ride-sharing services in April and allow regular drivers using their own cars to give fare-paying passengers a ride.

Uber has been fighting for a place in Japan’s $17 billion taxi market for years, but was long blocked by rules that generally limit ride-sharing services to licensed taxi drivers working for authorized taxi companies. Although Wednesday’s move comes with restrictions, it is likely to make hailing a ride more convenient and potentially less expensive for the record number of American and other tourists who have been coming to Japan since pandemic-era restrictions ended. “We want a system that is easy to use for foreign visitors," said the transport minister, Tetsuo Saito.

Long barred from operating a U.S.-style ride-hailing app in Japan, Uber has adapted by recruiting local taxi partners for its app. It has also built a successful food-delivery business. Some tourists in Japan already use Uber to get a ride on a licensed taxi.

But Uber’s efforts in that area have been outmatched by a powerful taxi boss and the rival app that he created. Government officials say it wasn’t Uber’s yearslong lobbying blitz that sparked change, but demographic realities. Around 230,000 taxi drivers are active in Japan today, down 15% from five years ago.

Meanwhile, the country has received an influx of overseas travelers. This year, Japan has welcomed a record 1.86 million American visitors through November, and the number is expected to keep rising. “It has become an urgent matter