Sony Corp said on Tuesday it would become the latest blue-chip firm to jockey for position in Japan's taxi and ride-hailing market, with plans for a joint venture to develop an artificial intelligence-based hailing system.
The partnership is the latest in a growing array of tie-ups between domestic taxi firms and tech companies, who see Japan as a potentially lucrative market but are prevented from offering ride-sharing services by stringent rules.
Currently, non-professional drivers are barred from offering taxi services on safety grounds, and ride-hailing companies are limited to services that "match" users to existing taxi fleets via mobile platforms.
SoftBank is an investor in ride-hailing firms around the world including Didi, most recently becoming Uber Technologies Inc's largest shareholder in January.
"It is clear to me that we need to come in with partnership in mind and in particular partnership with the taxi industry," he said without providing specifics.
Kawanabe has set up its own taxi-hailing company, JapanTaxi, winning investment from Toyota Motor Corp along the way, and has 60,000 taxis registered with the service.