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<p>* * * * * * * * TERRIE'S TAKE - BY TERRIE LLOYD * * * * * *<br>
A weekly roundup of news & information from Terrie Lloyd, a
long-term technology and media entrepreneur living in Japan.<br>
(<a class="moz-txt-link-freetext"
href="http://www.terrielloyd.com">http://www.terrielloyd.com</a>)<br>
<br>
General Edition Sunday, Sep 09, 2018, Issue No. 960<br>
<br>
- What's New -- Uber Scores Small But Significant Victory in Taxi
App Wars<br>
- News -- Space elevator taking first step to reality?<br>
- Upcoming Events<br>
- Corrections/Feedback - Why nightlife in Kyoto sucks<br>
- Travel Picks -- Studio Ghibli architecture in Tokyo, Lantern
Festival in Nozawa<br>
- News Credits<br>
<br>
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<br>
+++ WHAT'S NEW - Uber Scores Small But Significant Victory in Taxi
App Wars<br>
<br>
Last week, Uber Japan pulled off a bit of a coup, by announcing
completely unexpectedly that it was teaming up with Fuji Taxi of
Nagoya and launching the Uber taxi app with Fuji. The service will
begin with 350 cabs and is likely to eventually cover all 550
vehicles in due course. To be sure, this is not your mom's Uber
service in the USA and elsewhere, with independent drivers and
cars, but it is significant because it takes Uber from being a
virtually non-existent operator of cabs to being a high-profile
software company that collaborates with taxi firms. <br>
<br>
And in Japan, that could well be a winning strategy.<br>
<br>
Uber seems to have been able to pull off this rather high-profile
deal thanks to some quick thinking by its Japan team and a very
fortunate turn of events earlier this year. Back in February,
Nihon Kotsu, Japan's largest cab company, with about 5,000
vehicles of its own and through affiliates, (not counting the
numerous other company affiliations it has throughout Japan)
launched a "ride sharing" service whereby patrons late at night
headed in the same direction could share cabs and split the costs.
<br>
<br>
[Article continues below...]<br>
<br>
------------ Japan Travel Company Tour Services -----------<br>
<br>
Japan Travel's Type-2 licensed travel agency business is one
Japan's few independent foreign-owned inbound DMCs. One of our
specialties is looking after corporate groups of 10-300 people. To
date we have assisted in the successful holding of training
events, incentive travel, conferences, off-sites, and team bonding
programs. We have looked after the full gamut of services, such
as: international air travel, hotels, local travel, event
logistics and venues, entertainment, micro-management of dietary
needs, and special needs customers. <br>
<br>
We are highly motivated and are happy to work in a variety of
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Looking after hard-to-please high-tech groups is our specialty!<br>
<br>
For corporate travel assistance, contact us at: <a
class="moz-txt-link-abbreviated"
href="mailto:tours@japantravel.com">tours@japantravel.com</a>.
Or visit our pages at: <a class="moz-txt-link-freetext"
href="http://japantravel.co.jp/en/about/travel-agency/">http://japantravel.co.jp/en/about/travel-agency/</a><br>
-----------------------------------------------------------<br>
<br>
[...Article continues]<br>
<br>
The service was less popular than it should have been, but it
received a ton of publicity when several major Japanese media
firms tried to use the app and found that it was difficult to hail
late-night cabs that were headed the same way. There were also
plenty of negative reviews for the same reason on Google's Play
store. All the publicity, plus the fact that Nihon Kotsu's new
service offered potentially cheaper rates, which was a
breakthrough business idea, PLUS the lineup of heavy-hitting
investors in the taxi giant's related apps maker, added up to
seriously rattle Nihon Kotsu's competitors, and in our opinion
kicked off a competitive race that has only just begun. Now many
of those competitors are reaching out to the likes of Uber, Sony,
and China's Didi Chuxing for help to fight back.<br>
<br>
In fact, the Nihon Kotsu software affiliate, Japan Taxi Co., has
been working on a taxi app since its foundation in 2011, when the
family-owned firm's charismatic US-educated scion and CEO, Ichiro
Kawanabe, decided that despite government regulations, Uber was
too much of a risk to leave unchecked. He had been running the
actual taxi company itself, but decided in 2017 to appoint a hired
President and moved pretty much full time into the apps company.
Kawanabe is obviously a smart guy and has done a great job of
lining up big collaborators and investors, such as: bringing in
Toyota for JPY500m in 2017, raising JPY7bn from a variety of
investors in February, 2018, landing NTT DoCoMo for JPY2.25bn just
a couple of months ago, and now receiving JPY1.5bn from Kakao
Mobility of S. Korea. <br>
<br>
But back to Uber Japan. <br>
<br>
With the Nagoya operator now in its camp, Uber has to move quickly
to secure other operators around Japan in order to stay relevant
in the marketplace. The competing JapanTaxi app now runs on about
60,000 vehicles around the country, about a third of the nation's
entire fleet, and with Didi Chuxing gaining tie-ups through its
US$5bn investee relationship with Softbank, the window of
opportunity is closing fast. Didi Chuxing says it will launch in
Tokyo and Osaka as soon as November. <br>
<br>
The media has reported that Uber is talking to Fukuoka's largest
taxi operator, and probably there are many others in the pipeline.
The issue is whether the company can compete with all the insider
relationships that inevitably come from the competitor camps. This
is where Uber, like Airbnb, should not underestimate the Old Boys
networks in Japan. Many of these CEOs of major companies have been
socializing for decades, often having gone to the same schools,
and certainly having helped each other out in various ways during
that time. These types of human relationships are critical for
getting things done, and the networking not only has to be senior,
it has to be personal. If Uber has such a "fixer" then we rate
their chances of success in Japan as being better than average.
But if like Airbnb they are using an unconnected younger
professional, then their chances will be lower than average.<br>
<br>
The Japanese taxi sector is one of the world's largest, with a
combined revenue of about JPY1.7trn (US$15.3bn), so this is a
market that Uber really needs to win, to validate its strategy and
create a foundation for future growth. For the time being at
least, Uber can enjoy one small victory with their Fuji tie-up: it
is now well on the way to exceeding the 1% of the taxi market that
Nihon Kotsu vowed several years ago to restrict the US firm to.<br>
<br>
<br>
...The information janitors/<br>
<br>
***------------------------****-------------------------***<br>
<br>
--- Japantravel.bike fully operational - rent one today ---<br>
<br>
The <a class="moz-txt-link-abbreviated"
href="http://www.japantravel.bike">www.japantravel.bike</a>
One-Day Rental Cycle Pass service is now offered on more than
6,000 power-assisted bicycles all over Tokyo, and 500 in Osaka and
Nara. The service is developed on top of the DOCOMO BIKESHARE
bicycle rental platform, and offers an updated smartphone
interface, which provides international tourists easy access, a
fast payment system, and multilingual customer support. Passes
start at a flat rate of JPY 1,500 plus consumption tax for a basic
rental at the bike port (more for pre-bookings), and renters can
use the bicycle or any replacement, for up to 24 hours (from 00:01
to 23:59 each day). 580+ bicycle ports across the three cities
allow convenient rental and return to any port within the area.<br>
<br>
JapanTravel.Bike is coming soon to other major cities in Japan.<br>
<br>
To rent one: <a class="moz-txt-link-abbreviated"
href="http://www.japantravel.bike">www.japantravel.bike</a><br>
-----------------------------------------------------------<br>
<br>
+++ NEWS<br>
<br>
- Space elevator taking first step to reality?<br>
- Aegus missiles to cost US$2.1bn<br>
- LINE moving into finance business<br>
- Wage rise trickle starts<br>
- Trump remarks rattle Japanese stock market<br>
<br>
<br>
=> Space elevator taking first step to reality?<br>
<br>
It's a long way between here (on the ground) and the Thermosphere
of the earth, and not many people have taken the original idea
from Japan of building a "space elevator" to resupply space
stations seriously. Nonetheless, a pair of experimental satellites
about to be launched next week for Shizuoka University seem to
mark the beginning of the journey to prove a space elevator
viable. The two 10cm satellites will be released by the launch
vehicle and unfold to become connected by a 10m steel cable, upon
which a miniature vehicle will traverse. The vehicle's progress
and behavior will be recorded by video devices on each satellite.
***Ed: In the reference article, interesting to see scientists put
an actual number on the cost of a space elevator - of JPY10trn.
More interesting still to see that this is cheaper than what is
being spent on the Tokyo-Nagoya maglev train...** (Source: TT
commentary from <a class="moz-txt-link-abbreviated"
href="http://www.space.com">www.space.com</a>, Sep 07, 2018)<br>
<br>
<a class="moz-txt-link-freetext" href="http://bit.ly/2MeJp7y">http://bit.ly/2MeJp7y</a><br>
<br>
=> Aegus missiles to cost US$2.1bn<br>
<br>
The Japanese government appears to be offering Trump a sop by
announcing that the Self Defence Force (SDF) will beef up its
missile defenses with an additional (third) layer of missiles, to
be purchased from the USA for US$2.1bn. This will boost the
defense agency's spending with US military suppliers to about
JPY650bn and the SDF's overall spending will jump to around
JPY5trn this fiscal year. ***Ed: Maybe Tokyo is right to think
that they can drop a bit of cash for Trump to crow about...? We'll
see. In the meantime, good to see wsj.com crediting a quote to
Lance Gatling - our very own locally-based foreign military
expert.** (Source: TT commentary from wsj.com, Aug 31, 2018)<br>
<br>
<a class="moz-txt-link-freetext" href="https://on.wsj.com/2wV8kZ0">https://on.wsj.com/2wV8kZ0</a><br>
<br>
=> LINE moving into finance business<br>
<br>
LINE has announced it is issuing JPY148bn worth of convertible
bonds, so as to raise money for its new financial business
segment. The company has 164m active users, mostly in Japan, but
with some in Taiwan, Thailand, and Indonesia, and the company is
beefing up its LINE Pay business, which allows users to transfer
money to each other. Apparently the payment system is a big hit
and users have sent JPY195bn to each other over the last 3 months
alone. ***Ed: Clearly LINE and other SNS operators have learned
from Rakuten, which is paying for all of its other experiments and
failed M&As through profits from its financial services
operations.** (Source: TT commentary from reuters.com, Sep 04,
2018)<br>
<br>
<a class="moz-txt-link-freetext" href="https://reut.rs/2QhKEWX">https://reut.rs/2QhKEWX</a><br>
<br>
=> Wage rise trickle starts<br>
<br>
Although the government's Internal Affairs and Communications
Ministry is saying that the economy is still flat and that
household spending was up just 0.1% YOY, in fact, there are signs
that a general rise in wages may be ahead. According to the
ministry, the average household enjoyed an increase in summer
bonuses, and this has led to a mini boom in automobile upgrades.
Apparently in July domestic auto purchases jumped 54%. ***Ed: In
oh-so-cautious Japan, any pay increases are typically restrained
to the semi-annual bonuses first, since these can be adjusted back
down again if there are economic headwinds, THEN to salaries of
full-time workers, then finally to salaries of part-time workers -
who are the last in line.** (Source: TT commentary from
the-japan-news.com, Sep 08, 2018)<br>
<br>
<a class="moz-txt-link-freetext" href="http://bit.ly/2wV80cK">http://bit.ly/2wV80cK</a><br>
<br>
=> Trump remarks rattle Japanese stock market<br>
<br>
...Yes, well those local pay rises may be short-lived, no thanks
to Trump turning his sights to Japan as his next trade war target.
A Wall Street Journal report said that Trump is expecting conflict
with Japan over their trade imbalance. Leading the stock tumble
were IC chip producers, followed by auto makers, then retailers.
(Source: TT commentary from japantimes.co.jp, Sep 07, 2018)<br>
<br>
<a class="moz-txt-link-freetext" href="http://bit.ly/2N3vIOn">http://bit.ly/2N3vIOn</a><br>
<br>
<br>
<br>
NOTE: Broken links<br>
Some online news sources remove their articles after just a few
days of posting them, thus breaking our links -- we apologize for
the inconvenience.<br>
<br>
***------------------------****-------------------------***<br>
<br>
+++ UPCOMING EVENTS<br>
<br>
No upcoming events this week.<br>
<br>
***------------------------****-------------------------***<br>
<br>
+++ CORRECTIONS/FEEDBACK<br>
<br>
=> In TT-942, we ran a news commentary about Japan's nightlife
tourist options missing the mark. A reader came back with some
first-hand experience.<br>
<br>
*** Reader's feedback:<br>
<br>
A bit of feedback from my experience in Kyoto with the tourism
industry and small businesses including nightlife.<br>
<br>
Tourism is up but it's not doing much at all for the nightlife
industry such as bars, pubs, clubs, late-night eats, etc. The
biggest chunk of the increase is from East Asia and Southeast
Asia. Take Chinese tourists for example. They typically travel in
big groups and/or with family. They visit the famous places, shop,
dine, and then go straight back to the hotel. Zero gains for the
nightlife industry. But it does boost sales at the combini next to
the hotel. <br>
<br>
While Western tourists do go out, but it's generally limited to
the more adventurous types or those being guided by locals. A lot
of people would like to experience the nightlife but don't know
where to go and can't read anything. Too many obstacles.<br>
<br>
"Hey look! An Irish pub. I know what that is. Check it out,
English menu! Great. I guess I'll have a Guinness." This classic
scenario misses the unique experiences you can have at a Japanese
bar unless you are lucky enough to meet a friendly local at the
pub who will kick on with you and help you navigate the local
nightlife. BTW, I have a friend in Kyoto who's small tour company
offers nightlife tours. (<a class="moz-txt-link-abbreviated"
href="http://www.kyotofun.com">www.kyotofun.com</a>)<br>
<br>
As was pointed out, public transport is also a big issue. It shuts
down too early. This limits your transport options if you want to
stay out without taking an expensive cab ride home, walking in an
unfamiliar city, or illegally riding your bike after drinks (even
if you could find legal bike parking to begin with). Heck, even in
Shibuya the last bus to some suburbs is 10pm (my bus from Shibuya
stopped at 9:45pm). I sometimes wonder if some almighty taxi
industry lobbyists aren't behind the early shutdown times?! I
often hear western tourists complaining about this situation.<br>
<br>
Westerners are indeed fascinated by the exotic services offered in
Japan, but the night-life industry is just not open to
non-Japanese. Language barrier, cultural barrier, safety concerns,
etc. Unfortunately, I don't see that changing any time soon.<br>
<br>
***------------------------****-------------------------***<br>
<br>
+++ TRAVEL DESTINATIONS PICKS<br>
<br>
=> The Architecture of Studio Ghibli, Tokyo<br>
A glimpse into the homes of your favorite characters<br>
<br>
In honor of the release of the film "When Marnie Was There", the
Edo-Tokyo Open-Air Architectural Museum has curated a
retrospective of the elaborate and intricately detailed
architectures and interiors from Ghibli Studio's fictional
universe. Everything from extensive scaled models to blueprints
and sketches from films dating back to the early 80's will be
showcased from now until December 14th. Perhaps one of my favorite
Ghibli Studio exhibits to date, it is exceptionally thorough and
thoughtful, so expect to spend at least 30-60 minutes to digest
everything.<br>
<br>
One of the central large-scale pieces on display was Satsuki and
Mei's home from the feature "My Neighbor Totoro". Towering over
this model, you have cross-generational fans from all walks of
life passionately debating over which doorway Totoro first
appeared on screen. In many ways Miyazaki's vision of Japan is
deeply woven into the fabric of the country's national identity.
The films deeply touched people's hearts and captured their
imagination. Ghibli fanatics enamored by the studio's work over
last four decades will not want to miss this!<br>
<br>
<a class="moz-txt-link-freetext"
href="https://en.japantravel.com/tokyo/architecture-of-studio-ghibli/15081">https://en.japantravel.com/tokyo/architecture-of-studio-ghibli/15081</a><br>
<br>
=> Lantern Festival in Nozawa Onsen<br>
Experience a unique mountain escape<br>
<br>
Festivals are something that Nozawa Onsen village does well and
while January's Fire Festival may get all the hype due to it
coinciding with plenty of powder snow, September's Lantern
Festival is a local favorite and a great chance to explore Nagano
in early Autumn. The festival features a parade through the
village featuring drums, flute players, dancing, and an age-old
Japanese folk pantomime.<br>
<br>
The festival took place this last weekend, but for future
reference always occurs on September 8th and 9th.<br>
Venue: Nozawa Onsen <br>
When: Sep 8th - Sep 9th 2019, 9:00am - 11:00pm<br>
<br>
<a class="moz-txt-link-freetext"
href="https://en.japantravel.com/event/lantern-festival-in-nozawa-onsen/46412">https://en.japantravel.com/event/lantern-festival-in-nozawa-onsen/46412</a><br>
***------------------------****-------------------------***<br>
<br>
***********************************************************<br>
END<br>
<br>
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<br>
+++ ABOUT US<br>
<br>
STAFF<br>
Written by: Terrie Lloyd (<a class="moz-txt-link-abbreviated"
href="mailto:terrie.lloyd@japaninc.com">terrie.lloyd@japaninc.com</a>)<br>
<br>
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