TLDR:
- Uber will invest over $400M in Japan in 2025 to grow local operations and marketing.
- The company plans deeper partnerships with taxi operators to strengthen mobility services.
- Uber Eats adoption in Japan is 20%, leaving room for growth in urban areas.
- Digital income programs for drivers may expand to Japan, offering flexible work opportunities.
Uber commits $2B to Japan through a five-year expansion plan aimed at strengthening its position across mobility, delivery, and flexible work services.
The commitment was confirmed during a visit to Tokyo by Uber Technologies CEO Dara Khosrowshahi, who outlined the company’s long-term priorities for the Japanese market.
During an interview, Khosrowshahi framed Japan as a strategic focus within Uber’s global footprint.
He explained that the country’s scale and urban structure make it distinct from other regions where Uber operates, requiring sustained investment and collaboration.
Uber has operated locally since 2012, yet adoption levels remain lower than in comparable developed markets.
Company leadership views this disparity as an opportunity best addressed through steady capital allocation and local engagement.
Partnerships and Delivery as Core Growth Drivers
Discussing mobility services, Khosrowshahi pointed to the scale of the local transport sector, stating, “The Japanese taxi market is the single largest taxi market in the world.” He said this reality places partnerships with domestic taxi operators at the center of Uber’s expansion strategy.
Turning to food delivery, Khosrowshahi highlighted urban density as a key advantage. “Japan, especially in the big cities, is very dense in terms of how people live,” he said, explaining why the company sees strong potential for delivery services.
He added that current usage levels remain modest. According to Khosrowshahi, only around 20% of Japanese consumers have used Uber Eats, compared with far higher penetration in markets such as Australia.
To address this gap, Uber plans to increase spending on marketing and brand awareness. Khosrowshahi confirmed that the company expects to invest more than $400 million in Japan during 2025 and maintain similar spending levels over the following years.
Company executives reinforced this approach in public messages, describing Japan as a market where gradual expansion and consistent execution remain essential.
Autonomous Vehicles and the Future of Work
On technology, Khosrowshahi addressed Uber’s shift away from internal autonomous vehicle development.
He said the company’s partnership-based approach has resonated with users, noting, “Our customers absolutely love the self-driving vehicles.”
At the same time, he cautioned against near-term expectations. “It’ll be between five and ten years before autonomous is greater than 10% of the global volume of trips on our network,” Khosrowshahi said, citing regulatory hurdles and vehicle costs.
Japan remains part of longer-term planning. “We would love to bring autonomous vehicles in Japan,” he said, confirming that his visit included meetings with autonomous technology and vehicle partners.
Addressing workforce concerns tied to automation, Khosrowshahi acknowledged broader societal questions, stating that artificial intelligence can “create some issues related to the extent that it can replace human labor.”
He described Uber’s broader identity by saying, “Most people associate Uber with mobility, but another way of looking at Uber is we are a platform for flexible work.” He noted that more than nine million people earn through Uber globally.
On new digital income streams, Khosrowshahi explained their global relevance, stating, “These are digital tasks that are going to be global in nature, not U.S.-centric,” signaling potential expansion of such services into Japan.
The post Uber Commits $2B to Japan in Major Five-Year Expansion Push appeared first on Blockonomi.
Source: https://blockonomi.com/uber-commits-2b-to-japan-in-major-five-year-expansion-push/
