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Uber's Failure in Japan

disruptingjapan.com

41–50 of 139 posts

Re: Uber's Failure in Japan

#41
post #5

Better title would be "How Uber's Failure in Japan Can Help Multinational Corporate Expansions Everywhere". It's a bit of a stretch to still call Uber a startup, and even if you grant that, these lessons are not for startups. I happen to have co-founded a multi-national startup. The best advice I have for going multi-national as a startup is don't.

I think it also depends on where you are starting your company. If you are a US-based startup, you are already present in a massive market, and it may well make sense to focus on the US market only initially and only worry about selling to other countries later. Conversely, if you are based in a smaller country, then the small size of the country implies a small market which means limited domestic opportunities so the need to expand internationally early (even if just to a handful of larger markets such as the US) is much greater.

Re: Uber's Failure in Japan

#42
post #11
post #7

Earlier quoted context omitted.

Really? I find that most people think it's the other way around, that Uber and AirBnB represent the democratic will of the people, challenging broken systems that the people do not endorse now that a better idea is available. At least, that's how it looks over in USA/Canada.

feels that way as an Australian, also. We probably have a worse relationship with our government than the USA.

At least with Uber I think Australian governments are getting it right because even after (imo) Uber acted in bad faith by ignoring the law, ride sharing is still being legalised. I think US governments are still a bit behind, especially as Uber has been there for longer.

Re: Uber's Failure in Japan

#43
post #2

I think in many countries companies like Uber and AirBnB are seen to be a challenge to the democratic will of the people. It should be no surprise that we don't care very much for this! I wonder if Uber could have achieved success in markets with more trusted governments (Germany, Japan) if they started with a softer approach.

I think in many countries the freedom to engage in gay sex is seen to be a challenge to the democratic will of the people. It should be no surprise that we don't care very much for this! Those of us who are less democratic and more individualistic recognize how horrible it is when democracy prevents consenting adults from engaging in harmless private activities. The tyranny of the majority is still tyranny. Also, "de…

One is a harmless private activity - the other is a large company gaining an unfair advantage by choosing to ignore the law. Even though they are are both about freedom I think it's impossible to compare these.

Re: Uber's Failure in Japan

#44
The article has a point but didn't get it right. I'm a startup developer and my family runs a taxi business in Japan, and believe me I thought about making Uber for Japan the moment I heard about Uber, but I realized it's not going to work out. Here are my notes I jot down at that time.

1) People don't drive

In US everyone drives, in fact you need one. But you see none of my friends in Japan own a car. The only people who owns one are people that are well offed. This is because owning a car in Japan is expensive (there is thing called 車検), a hassle (no parking), and getting a driver's license is long and hard. Supply is low.

2) Cash

In Japan most people still carry cash. Their preferred method of payments (in order) are: cash, Suica (debit card for train), and then credit card tied with NFC in phone that charges your phone bill. So Taxis are more convenient than Uber.

3) Part-time jobs are everywhere

You see it's very easy to get a part-time jobs. In fact most college students are doing it all the time. In US Uber looks attractive "I can drive and make money!", but in Japan it is "I just have to go to that place that dispatch part-time jobs and will make money".

4) Zoning

This is a bit similar to what the article talks about but in a different perspective. Don't forget that Japan fits in California. Each city have its own law and you need to pay a lot for each zone. My family operates in one district and have 2 competitors. Other district have its own. Each city have its own market and demand. You can't even pilot in a small region because if you drive 15 minutes you are already in another district, which you are not allowed to pickup. These zoning are strict, and japanese people know about it. It existed from the day yakuza used it as protection fees.

5) Anybody can be a taxi driver

You see its not hard to be a taxi driver if you really want to be one. These are called 個人タクシー and can operate on your own.

Re: Uber's Failure in Japan

#45

The article has a point but didn't get it right. I'm a startup developer and my family runs a taxi business in Japan, and believe me I thought about making Uber for Japan the moment I heard about Uber, but I realized it's not going to work out. Here are my notes I jot down at that time. 1) People don't drive In US everyone drives, in fact you need one. But you see none of my friends in Japan own a car. The only peopl…

All the points are from the supply side. Maybe Japan will welcome a uber which drives itself?

Re: Uber's Failure in Japan

#46

Earlier quoted context omitted.

That and, having taken taxis in Japan... they're honestly very decent. Much better than the taxis I've taken elsewhere. Partly because the roads are less congested, even in the heart of Tokyo, since so many take the train. I never found myself wishing I could take an Uber in Japan -- a taxi was always there when I needed it... and that was only if I wasn't near a train station, which was almost never.

The biggest culture shock coming back to the bay area from a long Japan vacation was the taxi from the airport to a nearby hotel. The day before out return we had a driver in Tokyo who had approached it hotel from the wrong direction and had to drive around the block to get us to the front entrance. We were happy to walk half a block but he was very embarrassed and insisted to drive us to the front door and took way…

> I can't wait for the SF taxi industry to completely collapse.

“The arc of the moral universe is long, but it bends towards justice.”

Re: Uber's Failure in Japan

#47
post #3

The article basically states that Uber's cavalier attitude towards the law was the wrong approach to use in Japan, because the Japanese public does not respect this attitude, and that they should have worked it out with regulators before they started operations. I guess the broader lesson implied is that you need to put in the effort to understand the local culture, and adapt your strategies accordingly, before you t…

Honestly, I got to the early paragraph where the author mentioned trusting government, and I was sad. Not trusting government is a great disadvantage to America in most times, but it's our great strength in the times it matters most, and I'm really afraid my generation has lost that thread. Government is great when it goes right, but it's a prisoner's dilemma with a strong bias against you when its wrong. The value of government can be huge, but it can just as easily screw you over, at whims driven by small scale petty politics. Government is great when working well, but the damage it does when not working well is worth avoiding giving it much power.

Re: Uber's Failure in Japan

#48

Earlier quoted context omitted.

That and, having taken taxis in Japan... they're honestly very decent. Much better than the taxis I've taken elsewhere. Partly because the roads are less congested, even in the heart of Tokyo, since so many take the train. I never found myself wishing I could take an Uber in Japan -- a taxi was always there when I needed it... and that was only if I wasn't near a train station, which was almost never.

The biggest culture shock coming back to the bay area from a long Japan vacation was the taxi from the airport to a nearby hotel. The day before out return we had a driver in Tokyo who had approached it hotel from the wrong direction and had to drive around the block to get us to the front entrance. We were happy to walk half a block but he was very embarrassed and insisted to drive us to the front door and took way…

> I don't think many taxi drivers in the US respect their own work

For me, taxi driving was a game: "I wonder who I'm going to meet today..." One of my passengers had been nominated for the Nobel Peace Prize. He didn't win - I picked him up at the homeless shelter. He was going to work, and was almost back on his feet...

Sometimes passengers remembered me.

Sometimes passengers provided the rest of the story for things I'd been wondering about, or confirmed 'tall tales'. Like the bartender who confirmed that the visiting NBA basketball players really did come into his bar that night... Months before, the other night driver on our little team had said, "YOU'LL NEVER GUESS WHO WAS IN THE CAB LAST NIGHT!"

> and society for sure doesn't make them feel respected. Respect seems to be much tighter coupled to monetary success and I can't say I'm free from that.

Plenty of my passengers let me know that they appreciated us.

Taxi driving has traditionally been a rough occupation. Drivers used to carry a lot of cash, and were seen as targets for thugs who were desperate for money. Cash isn't as common as it used to be, so taxi drivers don't have to project as much "toughness" as they used to.

I was always looking for a bigger picture, so I guess my experiences in the cab reflect that.

Re: Uber's Failure in Japan

#49
post #36

"In fact, there is a school of thought in the West that when the fines are cheaper than the cost of compliance, it is not only OK to break that law, but that the CEO has a fiduciary duty to break the law." This claim seems absurd. Fiduciary duty is a legal concept, and for obvious reasons, there can never be a legal obligation to break the law. Americans might think it's ethically OK for corporations to break some la…

> a claim that a CEO had violated legal duties to shareholders by not breaking the law would get instantly laughed out of court I think that real issue here is that it would not get laughed out of the board room or a shareholders meeting.

I agree. And as Slavoj Zizek is fond of saying many (most) people are ok with someone doing the dirty work for them (break the law, torture, what have you) they just don't want to explicitly be told about it.

And anyway, if there's a better service to be had, that people want and are willing to pay for, screw the law, it's a high-latency side chain of authority that has built-in, but slow and political, update mechanisms, not the actual Word Of God.

Re: Uber's Failure in Japan

#50
Uber and other type apps are successful disrupting traditional taxi services where a heafty price tag is on medallions.

Where countries like Japan who do not have a medallion system really, there is not much to drive prices up for taxi fares for Uber and like to undercut to be successful.

A good taxi and transit system isnt everything... I live near YVR, we have taxis lined up at YVR for convenience. You are also paying way more cause first, the taxi medallions are so expensive... Then there additional fees for being licensed to do pickups at YVR in the designated area.

Everyone I know who commutes via taxi or transit wishes Uber types were here (banned).

Especially when u fly to DFW and the only options for a taxi is a broken minivan 20 mins later.

And then Uber being less than half and a lot quicker.

Convenience and cost. If Japan has those covered, then no reason for a Uber type to be operating there

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