Sony announced partnerships with several taxi firms to start a ride-hailing service in Japan on Tuesday.
Hours later, Uber's CEO Dara Khosrowshahi signaled his company's intention to expand further into the country.
Sony's ride-hailing service will be based on its artificial intelligence (AI) technology, the company said in a press release.
The Japanese electronics giant, along with Daiwa Motor Transportation Corporation and five other taxi firms, will aim to establish the new company in the spring.
The six taxi businesses together own 10,000 vehicles, and provide services mainly in the capital of Tokyo. Sony's AI technology will be used to predict taxi demand and make sure the right number of cars are available for users.