{"id":58430,"date":"2018-02-09T06:57:59","date_gmt":"2018-02-09T06:57:59","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=58430"},"modified":"2018-02-09T06:57:59","modified_gmt":"2018-02-09T06:57:59","slug":"chinas-didi-softbank-target-japan-in-taxi-hailing-push","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/technology\/chinas-didi-softbank-target-japan-in-taxi-hailing-push.html","title":{"rendered":"China’s Didi, SoftBank target Japan in taxi-hailing push"},"content":{"rendered":"

China’s Didi, SoftBank target Japan in taxi-hailing push<\/span><\/strong><\/span><\/h2>\n

China\u2019s Didi Chuxing and SoftBank Group Corp will roll out a venture in Japan later this year to provide ride-hailing services, amid a global battle to control the technology increasingly central to urban transport.<\/span><\/p>\n

The move into Japan underscores a recent push by Didi to beef up its presence in markets outside China, although it will face challenges to expand its services in a country where existing taxi companies are lobbying hard against deregulation.<\/span><\/p>\n

In Japan, ride-hailing companies face strict rules that effectively bar non-professional drivers from offering taxi services on safety grounds, and are limited to services that \u201cmatch\u201d users to existing taxi fleets via mobile platforms.<\/span><\/p>\n

The two firms said in a statement they aim to trial matching services in Japan this year. SoftBank is an investor in Didi, which raised $4 billion to fund its global push in December at a valuation of more than $50 billion.<\/span><\/p>\n

Tech-based disruptors like Didi and Uber Technologies Inc, as well as traditional carmakers, are all looking to get ahead in the ride-hailing market, amid a global shift in the auto industry towards car sharing, autonomous driving and electric vehicles.<\/span><\/p>\n

Didi has rapidly expanded overseas in the past year since sealing its dominance in China with the purchase of Uber\u2019s local unit in 2016, ending a cash-burning subsidy war that cost the U.S. firm roughly $2 billion.<\/span><\/p>\n

The Chinese firm is, however, facing rising challenges at home, including a slower pace of growth, new rivals entering the market and drivers complaining that reduced subsidies mean they are working longer hours for the less pay.<\/span><\/p>\n

In January Didi agreed to acquire control of Brazil\u2019s 99, in a deal sources said valued 99 at over $1 billion and gave Didi a \u201csignificant majority\u201d stake in the Brazilian firm.<\/span><\/p>\n

The Chinese company is also looking to break into Mexico and is expanding its presence in regions outside the Chinese mainland, including Hong Kong and Taiwan.<\/span><\/p>\n

\u201cI can see that in a year from now, if you\u2019re a Chinese outbound traveler, that everywhere you go you\u2019ll have the option of using Didi to find a ride, and that helps them secure their existing customer base,\u201d said Kirk Boodry, analyst at New Street Research.<\/span><\/p>\n

TECH VS CARS<\/span>
\nSoftBank holds stakes in Didi, Indian rival Ola and Southeast Asia\u2019s Grab. Last month the Japanese firm became the largest shareholder in Uber.<\/span><\/p>\n

SoftBank founder Masayoshi Son said this week that given the shifts in the auto market, car-hailing platforms \u201cmay have bigger value than the automobile itself\u201d in the future.<\/span><\/p>\n

Ride-hailing firms see Japan as a potentially lucrative market and are pressing regulators to ease stringent rules. Uber\u2019s new Chief Executive Dara Khosrowshahi will meet regulators there on his first visit to Asia later this month.<\/span><\/p>\n

On Thursday Toyota Motor Corp said it would take a stake in taxi-hailing service JapanTaxi, set up by Japan\u2019s largest taxi firm, Nihon Kotsu, whose president, \u201cprince of taxis\u201d Ichiro Kawanabe, has vigorously opposed deregulation.<\/span><\/p>\n

Didi is also trying to diversify at home. This week it announced an electric car-sharing service with 12 automakers, including local partners of Ford Motor Co and the alliance between Renault SA, Nissan Motor Co Ltd and Mitsubishi Motors Corp.<\/span><\/p>\n

Didi and SoftBank\u2019s trial service, which will leverage Didi\u2019s \u201cdeep learning-based demand prediction and smart dispatch systems\u201d, will initially roll out in cities including Osaka, Kyoto, Fukuoka and Tokyo.<\/span><\/p>\n

Source:-\u00a0https:\/\/www.reuters.com\/article\/us-didi-chuxing-softbank-japan\/chinas-didi-softbank-target-japan-in-taxi-hailing-push-idUSKBN1FT08L<\/span><\/p>\n

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