Uber Teams Up With Elon Musk's Tesla To Enter Japan's Taxi Market Following Government's Ridesharing Policy Shift: Report

Uber Technologies Inc UBER is set to enter Japan’s taxi industry with a fleet of vehicles from Elon Musk’s Tesla Inc TSLA. This strategic decision comes on the heels of a recent policy change by the Japanese government, opening up the nation to ridesharing services.

What Happened: As per a Bloomberg report, Uber is set to capitalize on Japan’s recent policy change, which comes into effect in April, to address a critical shortage of taxi drivers.

The initial phase of the plan involves deploying 30 Tesla Model Ys, with the fleet size expected to increase to 100 electric vehicles (EVs) throughout 2024. Pricing for the service is expected to be about 20% higher than average local taxi fares.

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Uber, which already operates taxi services in 33 countries, also plans to invest $800 million globally to facilitate the transition to EVs. The company has set ambitious goals to be fully electric in the US and Canada by 2030 and worldwide by 2040.

Why It Matters: Uber’s move into Japan follows a pattern of strategic expansion and partnerships. In November, Uber announced plans to integrate London’s iconic black cabs into its platform by 2024. This decision marked a significant shift in Uber’s relationship with traditional taxi services.

Earlier this month, Tesla and Uber also joined forces to offer Uber drivers discounts of up to $3,000 on Tesla’s electric cars. This partnership underscored Uber’s commitment to vehicle electrification and set the stage for the company’s expansion into Japan with a Tesla fleet.

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