Sony, one of the leading electronics company in the world has decided to enter the ride-hailing business. Sony is providing an Artificial Intelligence-based ride-hailing system to Japanese taxi companies.
Sony said that it is working on a collaboration to provide AI-based tech to six cab companies. These six cab operators presently own almost 10,000 vehicles in Tokyo, Japan.
Artificial Intelligence technology will be incorporated to identify the demand & supply of taxis. This will allow the cab firms to organize and mobilize their resources properly.
In Spring, the companies will collaborate to introduce a taxi-hailing app. As per Sony any more discussion relating to this new business venture will be discussed after the agreement is officially signed and is legally inked. Furthermore, another news came up relating to ride-hailing companies that Daiichi Kotsu Sangyo a cab company based in southern Fukuoka prefecture is in talks with Uber for a collaboration.
It was difficult for ride-hailing companies to make a mark in the Japanese market as the people there prefer their own best quality traditional taxi service. In the major cities of Japan taxi hailing is really easy and it’s not time-consuming at all. Thus companies like Uber couldn’t make a mark. People in Japan find booking an unlicensed car via an app quite time consuming.
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Most of the taxis are hired or stopped via cab rank. Just a very small percentage of taxis are linked to smartphones, which has become another issue for companies like Uber to make a mark in the Japanese market.
As per the transport ministry, the number of taxi travelers has gone down and it is hoped that through smartphone apps the number can be regained.
Now Sony deciding to develop AI-based ride-hailing business in Japan and offer its services to other companies is quite commendable.