Uber Technologies Inc. said Tuesday it will start its first taxi-hailing service in Japan this summer on Awaji Island in Hyogo Prefecture, targeting foreign tourists and residents in a step toward a full-fledged entry into the country's huge taxi market.

In collaboration with the Hyogo Prefectural Government, the pilot project will run through the end of next March by using local taxi operators who are accepted through a tender. In principle, users will ride the hailed taxi to other points on the island, rather than taking one of the bridges to the mainland, it said.

Uber, which has been in talks with over 20 taxi companies nationwide for business tie-ups, hopes the project will provide insights as it looks to expand ahead of the 2020 Tokyo Olympics and Paralympics, said Brooks Entwistle, Uber's chief business officer for international operations.