According to media reports, Uber Technologies is seeking to cooperate with Musk’s Tesla to enter Japan’s online ride-hailing market. According to reports, Uber will initially launch 30 Tesla Model Ys, which will be increased to 100 units by 2024. Its pricing will be about 20% higher than the general price of local taxis.

Uber operates taxi services in 33 countries and regions around the world, including its "UberGreen" service in North America and Europe.

The company also has an electrification goal: it will invest US$800 million globally to support the transformation of online ride-hailing vehicles to electric vehicles, achieving full electrification in the United States and Canada by 2030, and achieving full electrification globally by 2040.

Taxi driver shortage in Japan

The ride-hailing company’s move comes in response to the Japanese government’s recent decision toStarting from April next year, online ride-hailing services will be allowed to operate in specific areas and time periods to alleviate the shortage of taxi drivers.

A severe shortage of taxi drivers is putting pressure on the aging country to reconsider restrictions on ride-hailing services as inbound travel picks up.

In Japan, online ride-hailing has always been prohibited by law. Mainly for safety reasons, the Japanese government prohibits drivers who do not professionally operate vehicles from picking up and dropping off guests for a fee. The country's taxi industry has also been lobbying the government not to loosen regulations, as taxi operating qualifications are difficult to obtain in Japan.

The latest regulations will allow drivers with standard driving licenses to use their own vehicles to provide taxi services in areas and times when taxi demand is high, provided they are managed by a taxi company. By then, areas and periods of taxi shortage will be determined through mobile phone hailing software and wireless dispatch data.

For safety reasons, taxi companies will be responsible for vehicle maintenance and transportation, and their qualifications to operate online ride-hailing services must be approved by the Ministry of Land, Infrastructure, Transport and Tourism of Japan.

Currently, Japan is still discussing whether to completely lift the ban on online ride-hailing services like Uber that directly connect individual car owners and passengers. A final decision is expected to be made in June next year.