Luup, Inc. (Head office: Shibuya-ku, Tokyo; President and CEO: Daiki Okai; hereinafter “Luup”), which operates “LUUP,” a sharing service of electric micromobility including e-scooters and e-bikes, has raised a total of 1 billion yen through debt and asset financing. This is the first time in Japan (*1) that an e-scooter sharing service operator has raised funds through asset financing. This financing brings Luup’s total funding to approximately 4.6 billion yen.
The financing is done through sale-and-leaseback transactions (*2) of e-scooters with several financial institutions, including Sumitomo Mitsui Finance and Leasing, Mitsubishi HC Capital, and others, and through receiving loans from MUFG Bank, Japan Finance Corporation, and The Shoko Chukin Bank, the latter two being Japanese government-backed financial institutions. This financing was provided for all e-scooters to be introduced by May, and discussions are underway with each financial institution to expand transactions for vehicles to be introduced in the future.
The financial institutions acknowledged Luup’s stability as a business and its contribution to decarbonization and sustainability. Luup will continue to expand its business by utilizing debt and asset finance in addition to equity finance.
Luup’s Past and Outlook for the Future
Luup provides a sharing service for electric, compact, and single-passenger micromobility with the mission to “create an infrastructure that makes the entire city ‘a station front.’” The rollout began with e-bikes in May 2020, followed by the introduction of e-scooters in April 2021 as a demonstration experiment using the “System of Special Arrangements for Corporate Field Tests” under Japan’s Industrial Competitiveness Enhancement Act. Luup accounts for more than 90% share of e-scooter rides under the System of Special Arrangements for Corporate Field Tests for Micromobility Promotion Council member companies (*3).
Luup has been conducting its business through a series of discussions and dialogues with local governments, relevant ministries, agencies, and town residents, including users, with safety as its top priority. As a leading operator of electric micromobility sharing service, we will continue to expand the number of vehicles, ports, and service areas and evolve the service into an infrastructure that can be used more easily by city residents. At the same time, in the future, we will offer universal mobility vehicles with three or four wheels that can be used safely by the elderly and people with disabilities, aiming for a future in which all people can travel freely in the first and last mile.
Comment from Daiki Okai, Representative of Luup
To achieve our mission “to create an infrastructure that makes the entire city ‘a station front,’” we have been building our service “LUUP,” including both software and hardware products and an operating model to support them while carefully listening to the voices of the people of the city. We are very pleased that we were able to raise this scale of debt and asset financing, and we believe that this is a result of LUUP’s stability as a business and its value as a sustainable infrastructure.
Last month, a bill to amend the Road Traffic Act was submitted to the Diet, and after it is passed and enforced, the maximum speed for certain e-scooters will be 20 km/h and a driver’s license will not be required. Against the backdrop of these activities, Luup is now receiving a lot more requests from large corporations and municipalities than ever before to introduce our products.
From here, we will continue to expand our business to meet the increasing demand while improving safety. To achieve this, the cooperation of new members who will support us is indispensable. We are looking forward to hearing from those who are determined to change LUUP to realize our mission.
The entire Luup team will continue to make every effort to realize our mission, and we appreciate your support.
*1 Surveyed by Luup
*2 In a sale-and-leaseback transaction, one party (the seller-lessee) sells an asset it owns to another party (the buyer-lessor) and simultaneously leases back all or a portion of the same asset for all, or part of, the asset’s remaining economic life.
*3 2021 The Third Meeting of Working Group on Vehicle Safety Measures (March 14, 2022) Summary of the E-Scooter Demonstration Experiment Results and Safety Measures
【About Luup, Inc.】
Luup, Inc. will create a new short-distance mobility infrastructure that makes the entire city “a station front” through the sharing service of electric, compact, and single-passenger micromobility. We currently provide a high-density sharing service of e-scooters and e-bikes in Tokyo, Osaka, Kyoto, and Yokohama. We will reduce CO2 emissions by popularizing electric micromobility and introduce new electric mobility that can be ridden by the elderly and people with disabilities, and ultimately create a sustainable society where all people can get around safely and conveniently.
Shibuya-ku, Tokyo 151-0051
Representative: Daiki Okai
Founded: July 2018
● Luup, Inc.
Public Relations: Misato Matsumoto, Megumi Muramoto