The Micromobility Promotion Council, consisting mainly of domestic e-scooter operators, presented an interim report on the demonstration experiment of e-scooters on public roads using the “New Business Exception System” based on the Industrial Competitiveness Enhancement Act and requests for the creation of appropriate rules for e-scooters in the future, in the presence of relevant ministries and agencies, at the “Micromobility PT of the MaaS Parliamentary Group” held on Friday, December 4, 2020.

Details of the Presentation by the Micromobility Promotion Council

We would like to continue our dialogue with the stakeholders and launch a follow-up to this demonstration experiment as soon as possible in order to accelerate the development of a safe and secure environment for the use of e-scooters in Japan, which are rapidly gaining popularity overseas and are also effective in avoiding the density during COVID-19 pandemic and reducing environmental burdens.

In addition, there has been a recent increase in the number of illegal e-scooters being driven on roadways and sidewalks that do not meet the safety measures required by law. Insufficient understanding of the laws and regulations is unlikely to reduce inappropriate riding. The Micromobility Promotion Council aims to realize appropriate regulations based on a series of dialogues with regulatory authorities and urban development officials. 

Outline of the demonstration experiment of the e-scooter on public roads using the “New Business Exception System”
– Deregulation items approved this time
(1) Riding in bicycle lanes
(2) Revision of safety standards (position of front lights, number lights)
– Entities: EXx Inc., mobby ride Inc., and Luup, Inc.
– Areas: Tokyo (Chiyoda-ku, Shinjuku-ku, Shibuya-ku, and Setagaya-ku), Fujisawa-shi, Kanagawa; Kashiwa-shi, Chiba; Kobe-shi, Hyogo; Onomichi-shi, Hiroshima; Fukuoka-shi, Fukuoka
Implementation period: October 2020 to March 2021

The demonstration experiment complies with the safety standards for e-bikes and the rules of the Road Traffic Act, excluding the deregulation items listed above. Moped license holders, wearing helmets and using vehicles controlled at a maximum speed of less than 20 km/h, will ride in the bicycle lane and on the roadway in the exception area to promote verification of appropriate riding conditions for e-scooters.

Progress report on the above demonstration experiment
Based on the feedback from the participants of the demonstration experiment, the following issues were presented under the current driving conditions:
– Existence of parked vehicles on the roadway
– Speed difference with other vehicles
– Existence of illegal e-scooters
– Excessive security standards (constant front lighting, rear-view mirrors, alarms, braking devices, etc.)
– License plates that extend beyond the width of the vehicle

Luup, Inc. (Head office: Shibuya-ku, Tokyo; President and CEO: Daiki Okai; hereinafter “Luup”), which operates “LUUP,” a sharing service of “electric micromobility,” has completed raising funding from Daito Trust Construction Co., Ltd. (Head office: Minato-ku, Tokyo; President: Katsuma Kobayashi; hereinafter “Daito Trust Construction”).

Luup is creating a new short-distance mobility infrastructure in Japan through the sharing of electric, compact, and single-passenger micromobility.

Luup aims to establish first and last-mile transportation by offering not only e-bikes and e-scooters, but by providing a comprehensive offering of electric, compact, and single-passenger electric micromobility, and create a future where all people can move freely.

Background of Financing

Daito Trust Construction manages 1,130,218 residential rental buildings throughout Japan (as of March 31, 2020). The company was ranked No. 1 in the “Ranking of 1,083 Companies by Number of Units Managed in 2020” published in the Weekly Zenkoku Chintai Jutaku Shimbun (July 27, 2020 issue). This year marks the 24th consecutive year that the company has been ranked No. 1 in the same ranking.

By introducing LUUP to properties managed by Daito Trust Construction, we aim to realize “a town or house you would want to live in because it has LUUP.”

Luup, Inc. (hereinafter “Luup”) and the Smart City Promotion Committee (hereinafter “Promotion Committee”) of The Council for Area Development and Management of Otemachi, Marunouchi, and Yurakucho (hereinafter “OMY Council”), which consists of the three organizations involved in the development of the Otemachi, Marunouchi, and Yurakucho districts (hereinafter “OMY”), have announced that they will begin a demonstration experiment using e-scooters on public roads in  Chiyoda-ku, Tokyo, from October 27. This is the first government-approved demonstration of e-scooters running on public roads under the “New Business Exception System” in Japan.

While e-scooters are being introduced and spreading in the US and Europe, there are several hurdles to be cleared in Japan because they fall under the category and adopt the rules of motorized bicycles under current legislation.
With the goal of creating a new short-distance transportation infrastructure in Japan, Luup has been working to optimize these regulations aiming to develop a sharing service for e-scooters and other electric micromobility vehicles in Japan.

In this experiment, under collaboration between four parties, several dedicated mobility ports will be installed in the OMY area, and through the use of e-scooters by the participants, we will validate (1) the effectiveness of e-scooters to support faster and more comfortable last-mile transportation and (2) safety and social acceptance of e-scooters on public roads.

Furthermore, this experiment was applied to the “Smart City Model Project” of the Ministry of Land, Infrastructure, Transport, and Tourism by the promotion committee consisting OMY Council, and was selected for support in 2020 as a leading model project.

The Overview of the Experiment

– Period: October 27, 2020 to mid-March, 2021

– Objective: To validate the safety and social acceptance of e-scooters as a new mobility vehicle by utilizing the New Business Exception System based on the Industrial Competitiveness Enhancement Act.

– Riding conditions: Equivalent to the rule for motorized bicyclesunder current legislation (including helmet, driver’s license, license plate, etc.)
*In this demonstration experiment, participants will be able to ride in bike lanes in addition to the roadway.

– Methodology: Rental

– Area: OMY area, Kanda, Ochanomizu, and Jimbocho area in Chiyoda-ku, Tokyo

EXx Inc. (Head office: Minato-ku, Tokyo; CEO: Yamato Aoki; hereinafter “EXx”), mobby ride Inc. (Head office: Fukuoka-shi, Fukuoka; CEO: Ryo Hyuga; hereinafter “mobby ride”), and Luup, Inc. (Head office: Shibuya-ku, Tokyo; President and CEO: Daiki Okai; hereinafter “Luup”) announced that on Friday October 16, 2020, their plan to conduct a demonstration experiment of e-scooters on public roads (roadways and bicycle lanes in specific areas only) using the “New Business Exception System” under the Industrial Competitiveness Enhancement Act was approved. 

Background

In the midst of an super-aging society with a very low birthrate, and with the increase in the number of so-called shopping refugees and automobile accidents involving the elderly due to inadequate one-mile transportation, efforts to connect this one-mile distance are essential, and the social implementation of this micromobility is the key to maintaining and developing the vitality of the city.

Furthermore, in response to the recent spread of the new coronavirus, countries have been developing lanes dedicated to micromobility, and micromobility is attracting attention as a means of avoiding the “Three Cs (crowded places, close-contact settings, and closed spaces).” Also in Japan, there is a need for new transportation that can complement public transportation, and we believe that its social implementation is an urgent task.

Among the micromobility technologies, e-scooters are the only electric, small, single-seat mobility vehicles currently in widespread use around the world. The Micromobility Promotion Council was established in May 2019, led by micromobility sharing providers, to promote efforts for social implementation of new micromobility technologies. The demonstration has been approved as a result of overlapping dialogue with community development officials and regulatory agencies. With this approval, we would like to proceed with this demonstration as a step toward the widespread adoption of not only e-scooters but also electric micromobility in general.

Details of Special Measures

E-scooters are classified as motorized bicycles under the law, but in this demonstration experiment, they will be able to ride in a regular bicycle lane in a specific area (a general “bicycle lane”). However, the demonstration experiment will allow the use of ordinary bicycle lanes in specific areas.

Overview of the Demonstration Experiment

Implementation period
– Start: Mid-October 2020 or later
– End: End of March, 2021

Areas of implementation
– EXx: All areas of Setagaya-ku and Shibuya-ku, Tokyo; Fujisawa-shi, Kanagawa; and some areas of Kashiwa-shi, Chiba
– mobby ride: Fukuoka-shi, Fukuoka; Onomichi-shi, Hiroshima; Imabari-shi, Ehime; Kobe-shi, Hyogo (all in some areas)
– Luup: All areas of Chiyoda-ku, Shinjuku-ku, Setagaya-ku, and Shibuya-ku in Tokyo

Future Outlook

In July 2020, the following statement on e-scooters was mentioned in the “Growth Strategy Follow-up” approved by the Cabinet:
“A new project will be conducted to verify riding locations and vehicle safety standards. In addition, based on the results of the new project, the state of traffic rules, including requirements for drivers, safety assurance measures, and vehicle classifications, will be examined, including whether or not a system review is necessary. In particular, a conclusion will be reached by the first half of 2021 on special measures for driver requirements, etc., based on the National Strategic Special Zones Law (partial excerpt).”

Luup, Inc. (Head office: Shibuya-ku, Tokyo; President and CEO: Daiki Okai; hereinafter “Luup”), which operates “LUUP,” a sharing service of “electric micromobility,” has announced that it has conducted a third-party allotment of new shares in July 2020 with ANRI (Head office: Shibuya-ku, Tokyo; President: Anri Samata) as the lead investor, ENEOS Innovation Partners Co., Ltd. (Head office: Chiyoda-ku, Tokyo; President: Yasunori Yazaki; hereinafter “ENEOS Innovation Partners”), the CVC (Corporate Venture Capital) of the ENEOS Group, and Obayashi Corporation (Head office: Minato-ku, Tokyo; President: Kenji Hasuwa; hereinafter “Obayash”), raising 450 million yen in capital.

Together with the previous third-party allotment of new shares to several venture capital firms, several individual investors, and a business corporation, this round brings the total funding raised to 855 million yen.

Background of Financing

Luup is aiming to create a new short-distance mobility infrastructure in Japan through the sharing business of electric, compact, and single-passenger micromobility. As the first step, we have been operating the “LUUP” e-bike sharing service, which allows users to ride e-bikes from anywhere throughout the city and return them to their favorite places, since May 25, 2020 in six central wards of Tokyo: Shibuya, Meguro, Minato, Setagaya, Shinagawa, and Shinjuku. The second step that awaits is e-scooter sharing, followed by plans to introduce new electric micromobility that can solve the individual mobility issues for all.

The ENEOS Group and the Obayashi Corporation both have a long history of providing infrastructure in specific areas of Japanese society. The ENEOS Group is building an energy supply environment for society and aims to establish an optimal energy supply system for Luup’s mobility. Obayashi Corporation is engaged in construction, civil engineering, and development aiming to provide people with a better quality of life by offering construction services that are adapted to regional characteristics.

To achieve creating a short-distance mobility infrastructure, it is vital to build an energy supply system for our vehicles, and to provide the type and number of vehicles that meet the needs of the people, all in a format suited to the city. Based on this funding, we will work toward the development of new electric micromobility and future collaboration with the ENEOS Group and Obayashi Corporation.

Luup, Inc. (Head office: Shibuya-ku, Tokyo; President and CEO: Daiki Okai; hereinafter “Luup”) will begin offering “LUUP,” a short-distance e-bike sharing service, in Tokyo on May 25, 2020 (*1).

What is LUUP?

LUUP is a sharing service that allows users to ride electric micromobility vehicles throughout the city from anywhere and return them to anywhere they wish. In the future, we plan to introduce a variety of electric micromobility within the service, but will start with the sharing of e-bikes. The service has the highest density of ports among existing bicycle-sharing service operators in the available area.

Ports are places where LUUP mobility vehicles can be borrowed and returned. Since we use compact e-bikes, LUUP’s ports can be installed in the space of a single vending machine. This allows ports to be installed in places that were previously unfeasible, such as next to the entrance of a convenience store or restaurant. Compared to existing sharing services, the ability to install ports in a variety of spots realizes our high-density port network and easy access to places that are too far to walk from the nearest station.

Background

Currently, the spread of the new coronavirus infection has prompted a review of public transportation and an urgent need to establish a lifestyle within walking or biking distance from home. The “New Lifestyle” announced by the Ministry of Health, Labor and Welfare on May 4, 2020, recommends walking and bicycling as a means of transportation to avoid “Three Cs (crowded places, close-contact settings, and closed spaces).” Luup will leverage the three features of the “LUUP” sharing service to realize a society where people can move around with peace of mind in the post-corona era.

1. High density of ports allows sharing to be used anywhere, just like owning a bicycle
2. The strong electric assistance and compact size of the vehicle allow anyone to ride comfortably without getting tired
3. Replace e-bikes with new mobility such as e-scooters in the future to meet a wide range of needs

Outlook for the Future

Luup will enable a future in which all people can choose a mobility experience tailored to their needs, physical capabilities, and individual preferences.

Luup, Inc. (Head office: Shibuya-ku, Tokyo; President and CEO: Daiki Okai; hereinafter “Luup”) was certified on October 17, 2019 under the Regulatory Sandbox System for Demonstration of New Technologies (known as the “Regulatory Sandbox System”) for its riding demonstration plan for the implementation of its e-scooter sharing business. This is the first time that the Regulatory Sandbox System has been certified in the mobility sector.

Today’s aging Japanese society faces a variety of challenges, such as traffic accidents caused by elderly drivers and an increase in the number of so-called shopping refugees. In urban areas, public transportation is in excessive demand due to the rapid increase in inbound traffic, while in rural areas, there is a lack of transportation for daily mobility. In order to solve these issues, it is necessary to implement an infrastructure of electric, compact vehicles into society. Luup aims for a future in which a safe and convenient mobility is available to all people, using various electric micromobility devices such as e-scooters.

Based on this certification, we will conduct a demonstration and obtain riding data and submit it to the competent ministries in the effort to determine what riding conditions are necessary for a safe social implementation of e-scooters. Under continuous discussions with the relevant ministries and agencies, we will continue to study the service, the vehicle, and the riding conditions in preparation for the launch of the service.

What is a Regulatory Sandbox System?

The Regulatory Sandbox System is a system in which, when the implementation of new technologies such as IoT, blockchain, and robots, or the implementation of new business models such as platform-type businesses and the sharing economy is difficult in relation to current regulations, a demonstration is conducted based on an application submitted by a business entity and approved by the regulatory authorities for the social demonstration of new technologies and business models, and the information and data obtained through the demonstration are used to reconsider the existing regulations.

Future Outlook

The e-scooter sharing demonstration will be conducted in a part of Yokohama National University’s Tokiwadai campus during the demonstration period, which will last until December 2019. The results of this demonstration will be regularly submitted to the competent ministries and agencies for considering the implementation of a e-scooter sharing service.

Mobility to be used in the demonstration at Yokohama National University

The following two types of mobility will be used at the demonstration to be conducted at Yokohama National University.

1. Two-wheeled e-scooter

The two-wheeled e-scooter is a small, electric-powered mobility vehicle featuring a simple steering wheel operation. Unlike bicycles, e-scooters do not require straddling or pedaling, making them safe and easy for anyone to ride.

2. Four-wheeled e-scooter for the elderly

Luup is the only company in the world that has developed and deployed four-wheeled e-scooters for sharing. Four-wheeled e-scooters are more stable and less likely to fall over than the two-wheeled e-scooters. The maximum speed is lower than that of the two-wheeled e-scooters, making it suitable for the elderly to move around with their families or to take a slow tour of sightseeing spots. *We are currently improving the prototype vehicle as needed. An improved version will be officially announced in the future.

Five companies, mainly micromobility sharing providers in Japan, including AnyPay, Inc. (Head office: Minato-ku, Tokyo; CEO: Takafumi Inoue), Kioicho Strategy Institute, Inc. (Head office: Chiyoda-ku, Tokyo; President and CEO: Masahito Seno), Luup, Inc. (Head office: Shibuya-ku, Tokyo; President and CEO: Daiki Okai), mymerit, Inc. (Head office: Minato-ku, Tokyo; President and CEO: Taiki Nakane), Z Corporation Inc. (Head office: Chiyoda-ku, Tokyo; President and CEO: Manabu Miyasaka) (*In alphabetical order), have established the Micromobility Promotion Council to promote the social implementation of new micromobility technologies.

Purpose of Establishment of the Council

Starting in 2018, studies are underway to develop innovative technologies and social systems represented by automated driving and Mobility as a Service (MaaS) that can help solve mobility issues, such as measures for so-called shopping refugees and tourists in urban and rural areas, while utilizing existing means of public transportation.

However, transit systems that complement the first and last one-mile transportation have only been implemented in a few areas, with the exception of some shared e-bkies operations. As a result, 80% of these one-mile transportation are still dependent on walking or biking. However, various types of micromobility have already been developed, such as e-scooters, cars for the elderly, and e-wheelchairs, and experiments are underway to connect these with existing public transportation systems. In the future, as the population ages and the number of shopping refugees increases due to the aging of the population and the lack of one-mile transportation, and as automobile accidents involving the elderly become an issue, efforts to connect this one-mile distance will be essential, and the social implementation of this micromobility will be key to maintaining and developing the vitality of the cities.

The council was established to promote efforts for social implementation of new micromobility technologies, led by micromobility sharing providers. The industry is united in its efforts to contribute to the establishment of a self-regulatory system and new regulations to ensure safety and security.

Name of the Council

Micromobility Promotion Council

Activity Details

The main topics to be discussed are as follows:
1. Establishment of a self-regulatory system
2. Determination of basic policies for safe riding guidance
3. Promote demonstration experiments and businesses
4. Policy recommendations

Luup, Inc. (Head office: Shibuya-ku, Tokyo; President and CEO: Daiki Okai), an operator of e-scooter sharing service, signed a memorandum of understanding of alliance with Hamamatsu City in Shizuoka Prefecture, Nara City in Nara Prefecture, Yokkaichi City in Mie Prefecture, Tama City in Tokyo, and Yokoze Town in Saitama Prefecture.

Outlook for the Future

Through this alliance, Luup, Inc. will proceed with a demonstration experiment toward launching the e-scooter sharing service “LUUP.” In the effort of  implementing e-scooter sharing and assurance of safety, as well as port installation, we aim to provide a service over the medium to long term that will improve the efficiency of each city residents’ daily transportation and help revitalize the local economy.