Didi launches taxi-hailing joint venture in Japan

Didi Chuxing, China's largest ride-hailing company, announced on Thursday the official launch of its Japanese joint venture with SoftBank, to offer on-demand taxi-hailing services and smart transportation solutions for citizens and tourists in the world's third-largest economy.

The move comes amid a surge in the number of Chinese tourists to Japan and is part of the Beijing-based company's broader push to export its artificial intelligence technology.

Didi Mobility Japan, as the joint venture is called, will start trials this year in Osaka, followed by Tokyo, Kyoto and Fukuoka, Didi said in a statement.

Jean Liu, president of Didi Chuxing, said, "Didi believes AI-based innovation may contribute to new growth in the taxi industry and the public transportation sectors. We look forward to developing extensive collaboration with all industry players to assist in smart city initiatives in Japan and Asia."

She did not specify taxi partners. Didi said in a statement that its new platform will help taxi operators track drivers and rides using heat maps, while passengers will be able to summon rides and rate drivers via an app, which will also offer Chinese-Japanese translation.

Japan is the world's third-largest taxi market. With an advanced mobile internet infrastructure and a global reputation for high-quality taxi service, Japan holds great potential as a market for online taxi-hailing, said Stephen Zhu, vice-president of Didi Chuxing and CEO of Didi Japan.

There is earnest demand for more convenient urban and regional transportation services, especially in light of the growing population of senior citizens, Zhu added.

The push by Didi also coincides with a growing number of Chinese tourists heading to Japan. According to the Japan National Tourism Organization, inbound travelers grew by 28 percent annually, and the number of Chinese visitors by 34 percent per year between 2012 and 2017.

Didi said it aims to support the Japanese taxi industry to capture these new opportunities in anticipation of the 2020 Tokyo Olympics.