Uber is going to get some stiff competition in Japan thanks to the launch of the Line Taxi app. It comes from the Japanese messaging giant Line and will be made available nationwide. Working in partnership with Nihon Kotsu, one of Japan’s largest taxi companies, the Line Taxi app will also give British taxi app Hailo a run for its money.
Since both Uber and Hailo currently occupy only small sectors of Japan, the Line Taxi app is able to tap into a large market opportunity. The Verge reports, "TechInAsia adds that in its own comparison of Line Taxi and Uber, it was Line that offered 'better coverage and shorter wait times' for cars in central Tokyo." This is very promising.
What Makes This Trend Stand Out
- Ride-hailing App Competition
- The introduction of the Line Taxi app in Japan competes head to head with established ride-hailing apps, opening opportunities for other app developers to join the competition.
- Collaboration Between Large Corporations an App Developers
- The partnership between Nihon Kotsu and Line Taxi signifies the potential for greater collaboration between large corporate entities with startups and app developers for mutual profit.
- Focus on Shorter Wait Times
- Companies that can offer shorter wait times in a crowded market such as Japan’s ride-hailing industry can gain a competitive edge.
Sectors Adopting This
- Ride-hailing and Taxi Services
- The introduction of Line Taxi has created stronger competition in the ride-hailing industry, making it difficult for both established and new taxi services to compete effectively.
- Messaging App Industry
- The messaging giant Line expanding into ride-hailing services indicates messaging apps are expanding into multiple industries and disrupting traditional business models by partnering with existing service providers.
- Technological Innovation in Transportation
- The competition between existing ride-hailing apps and new entrants like the Line Taxi app creates disruption and innovation in the transportation sector in Japan and beyond.
