Uber CEO visits Kaga as company expands rural ride‑hailing in Japan

Uber’s chief executive, Dara Khosrowshahi, visited Kaga, a small hot‑springs town in western Japan, and hailed a car outside the municipal offices as he said the company intends to grow “outside of the big cities” there. Japan has long restricted Uber’s app to hailing licensed taxis, and the domestic mobile taxi market has been dominated by a local rival, Go.

Demographic pressures in rural areas prompted regulators to begin easing those limits; in 2024 Japan allowed private‑vehicle hailing in specific areas such as Kaga, and Uber started operating there that year. Uber has invested heavily in global expansion and now generates nearly half its revenue outside the United States and Canada, up from 38 percent in 2022, but company leaders say Japan remains a difficult market.

Kaga, a city of about 60,000, is aging and facing shortages of taxi and bus drivers. Mayor Toshiaki Yamada said, “When it comes to public transport, we have a very serious issue,” and that Uber has offered relief, with monthly rides rising to more than 300 from 100. Officials have mounted local outreach — seminars, posters and other efforts — because many older residents are unfamiliar with smartphone apps; one resident, 85, said she did not know Uber.

Officials and Uber hope Kaga can serve as a blueprint for expansion into other rural regions; Mr.

Key Topics

Business, Uber, Dara Khosrowshahi, Kaga, Japan, Go