Uber struggles to make inroads in Japan

Tokyo

UBER may be shredding business models for taxi firms the world over but it is struggling to make inroads in Japan, where risk-averse passengers prefer to stick to their high-quality traditional taxi service.

Japan, with its wealthy customer base and megacities such as Tokyo, should represent rich pickings for Uber.

In 2015, the national market for taxis had a turnover of 1.73 trillion yen (S$20.7 billion), according to transport ministry data.

There are 50,000 taxis in Tokyo alone - instantly recognisable with their impeccable polished exteriors and doors that open automatically to let valued customers board effortlessly.

And with hailing a taxi rarely taking more than a few seconds in the major cities, there has been sluggish tak…