INSUBCONTINENT EXCLUSIVE:
In Japan, only 2.7 percent of the families are aware of the sharing economy
(Representational)Tokyo: Thousands of Airbnb reservations scrapped, Uber reduced to delivering food: life is hard in Japan for giants of
the sharing economy, stuck between tough regulation and popular suspicion.Japan may be the world's third-largest economy and a high-tech hub
but it has been surprisingly slow to warm to the sharing economy that has disrupted markets across the globe.According to 2016 figures
compiled by research institute Yano the sharing economy accounted for 50 billion yen ($455 million) in Japan.While that's a 26 percent
year-on-year rise, it is a drop in the ocean compared with markets in Europe, the US or China, which are worth tens or hundreds of billions
of dollars.This is partly due to confusion among the public about what the sharing economy is: only 2.7 percent of the population are
familiar with the concept, according to a 2017 survey by PwC professional services firm.Strict local regulations have also held back the
sector -- as flat-sharing firm Airbnb found out to its cost recently.On June 15, a new law came into effect that sought to regulate the
short-term rental sector.Although welcomed by Airbnb as a way to clear up the legal grey zone in which it was operating, the new law has
become a double-edged sword, with thousands of owners forced to remove property after failing to comply with it."This stinks -- and that's
an understatement," fumed Airbnb as it announced it was cancelling thousands of reservations with owners who had failed to obtain a
registration number by June 15.In addition, the law prevents owners from renting out properties for more than 180 nights per year and local
authorities can impose further restrictions.In the tourist magnet of Kyoto for example, rentals in residential areas are only allowed
between mid-January and mid-March, the tourism low season.Vested InterestsSuch restrictions are in effect choking the sector, says Hiroyuki
Kishi, a former official at the economy ministry and now professor at Tokyo's Keio University."Vested interests are so strong in Japan," he
told AFP, regretting that such measures are coming into force "only two years before the Olympic Games" when Japan hopes to welcome 40
million tourists.For Airbnb, the laws seek to protect the hotel industry and ryokans -- traditional Japanese inns -- whereas the taxi lobby
has made it difficult for ride-sharing app Uber to set up shop in Japan."To promote the sharing economy, we have to loosen regulations" to
allow new players to enter the market, said Kishi.He believes that despite the "Abenomics" reform efforts of Prime Minister Shinzo Abe, the
government has "no intention" of opening up the sector "for fear of a backlash in sectors which have enjoyed a monopoly until now".Sharing
economy firms have faced pushback elsewhere too, with Uber being accused of skirting regulations and making long-standing jobs obsolete, and
Airbnb criticised for pushing up prices and transforming residential areas in many popular tourist destinations.Takashi Sabetto, from an
association that aims to promote the sharing economy, said in Japan "public opinion is very much against services like Airbnb and Uber"."We
have tried to change this mentality but it is very difficult
It takes time," added Sabetto.One reason is that "Japanese are very protective of their privacy."The culture of sharing is not ingrained in
society and -- in the case of Airbnb -- they do not like the noise and security risk caused by a procession of tourists in their backyard,
he said.In addition, unlike in many developed economies, the quality of service provision is very high in Japan
Hailing a taxi in a major city rarely takes more than a few seconds, lowering demand for Uber-type services.CraftsmanshipDespite this bleak
picture, there are some successes, notes Sabetto, with younger generations showing "a greater interest" in the sharing economy.Car- and
bike-sharing schemes are taking off and meal delivery service UberEATS has been a hit in Tokyo since arriving in 2016.But local start-ups
struggle to get financing, Sabetto said, in a country that tends to pride "monozukuri" -- or craftsmanship -- above innovation.Some firms
are moving away from the cities into the countryside, where a steady trend of depopulation has made sharing economy services more
attractive.Uber last month said it would launch a pilot programme this summer to hook up tourists and residents with available drivers in
the western Awaji island.But Sabetto said a change in culture was needed for the sharing economy to really take root."I would like
foreigners that are aware of the sharing economy to make their voice heard more to change the situation," he said.(Except for the headline,
this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)
