Sony allies with cabs as Uber expands in Japan

Sony is jumping into the ride-hailing fray.

The Japanese electronics maker plans to form a joint venture with six taxi operators in Japan this spring, according to a statement on Tuesday. The alliance comes as Uber Technologies, the world’s biggest ride-hailing startup, is in talks with another cab company as it tries to build its presence in the country.

After years of little action, Japan’s lackluster ride-hailing industry is suddenly seeing a lot of activity. Uber Chief Executive Officer Dara Khosrowshahi is visiting the country to underscore the importance of its $16 billion (1.7 trillion yen) taxi market. The San Francisco-based company, which has failed to gain much ground since launching in 2013 amid stringent regulations, is in talks for a venture with taxi operator Daiichi Koutsu Sangyo Co.

Sony’s alliance is with Checker Cab Group, Daiwa Motor Transportation Co., Hinomaru Kotsu Co., Kokusai Motorcars Co., Kotobuki Taxi Co. and Green Cab Co., which have a combined fleet of more than 10,000 cars in the greater Tokyo area, according to the statement. Sony will develop a ride-hailing app powered by artificial intelligence and provide a payment service. Taxi operators beyond the initial group will also be able to join the platform, it said.

Earlier this month, SoftBank Group Corp. announced a partnership with China’s Didi Chuxing and plans to begin trial services this year. Toyota Motor Corp. has teamed up with Nihon Kotsu Co.

Sony has emerged from years of restructuring of its consumer electronics businesses and is forecasting record earnings. While the company doesn’t have any experience in ride-hailing area, it has long used machine learning for internal projects, such as its Aibo robot dog.