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 completed raising a total of 2 billion yen.

In recognition of Luup’s ability to realize a sustainable society with low environmental impact through the implementation of electric micromobility, Luup has received investment from new investors including Mori Trust Co., Ltd. (Head office: Minato-ku, Tokyo; President and CEO: Miwako Date; hereinafter “Mori Trust”) and Open Network Lab ESG I Investment Limited Partnership (Head office: Shibuya-ku, Tokyo; General Partner: DG Incubation, Inc.; hereinafter “Earthshot Fund”) and also additional investment from several existing investors including VCs and business companies.

Using the funds, Luup will strengthen the development of its micromobility business to create a sustainable society and will continue discussions with several potential investors for further business expansion in the future.

Background of Financing

With the mission to “create an infrastructure that turns the entire city into a ‘station front.’” Luup provides sharing services using e-scooters and e-bikes, and in the future aims to introduce mobility that is easy and safe for the elderly and/or disabled to ride.

With this financing, Luup will further strengthen the development of its micromobility business to create a sustainable society. Luup has been driving the project in discussions with local governments and relevant ministries and agencies, with the goal of creating an infrastructure that will turn the entire city into a ‘station front.’ However, in order for new products to spread in society, we must propose and be responsible for delivering higher quality and pleasant experiences as an infrastructure than ever before. With this financing, we will establish a development structure that can make better use of the data possessed by the product and quickly test hypotheses, and promote research and development of the micromobility business that goes beyond the accelerated development of LUUP.

Details of the Financing

In recognition of the fact that the implementation of electric micromobility can realize a sustainable society with a low environmental impact, Luup has attracted new investors including Mori Trust, Earthshot Fund, ZFP No. 1 Investment Limited Partnership (Location: Chiyoda-ku, Tokyo; General Partner: Zenrin Future Partners Co., Ltd.; hereinafter “Zenrin Future Partners”), and also additional investment from several existing investors including Daito Trust Construction Co., Ltd. (Head office: Minato-ku, Tokyo; President and CEO: Katsuma Kobayashi; hereinafter “Daito Trust Construction”) and other VCs and business companies. Together with the 750 million yen in funding already raised in April 2021, this round brings the total funding raised to 2 billion yen.

With Mori Trust, we will work together to create a new way of urbanization and tourism using micromobility in the office areas that Mori Trust is focusing on, such as Toranomon and Akasaka in Tokyo, as well as in the resort areas that they are developing in various parts of Japan.

For Earthshot Fund, Luup is the first investment since the fund was founded. We are honored that the fund, which conducts investment activities with a focus on major social, technological, and environmental changes occurring on a global scale, has recognized our work, and we will continue to develop our business in line with the fund’s ESG initiatives.

Zenrin Co. Ltd. (Hereinafter “Zenrin”), the parent company of Zenrin Future Partners, and Luup will combine Zenrin’s granular map data on local buildings, sidewalks, and roadways with Luup’s mobility data to improve the functionality of safe and efficient services and develop new services.

Daito Trust Construction manages the largest number of residential rental buildings in Japan, and Luup will continue to strengthen the implementation of LUUP ports in properties managed by Daito Trust Construction, aiming to realize “a town or house you would want to live in if it has LUUP”.

Comment from Daiki Okai, CEO of Luup

Luup is creating a product called “LUUP,” which allows electric micromobility to be shared throughout the city, with the mission to “create an infrastructure that turns the entire city into a ‘station front.’”

Luup has focused not only on the development of software and hardware that shape the user experience but also on activities such as rulemaking for social implementation of new mobility and alliances to expand the number of ports. As a result, we were able to install more ports than convenience stores in Shibuya, an overcrowded city with little available real estate space, and the number of app downloads and users has continued to grow rapidly since the e-scooter was launched on April 23, 2021, under special government measures.

It has been about three years since Luup was founded, and I believe that Luup has finally reached its starting point. In order to make Japanese cities, which have the most developed railroads and station areas in the world, more comfortable to live in, we will accelerate our efforts to create the world’s one and only product by considering the most appropriate form of infrastructure.

We have raised additional funds to enable all teams involved in LUUP to achieve maximum performance. The investors who participated in this round made the decision to invest and collaborate with us because they believe in a future where LUUP, which is still in its infancy at this point, will become a sustainable infrastructure that will support Japan. The entire Luup team will continue to make every effort to “create an infrastructure that turns the entire city into a ‘station front’ for the sake of all the people who live in the city and for the investors who participated in this financing.

Luup, Inc. (Head office: Shibuya-ku, Tokyo; President and CEO: Daiki Okai; hereinafter “Luup”), which operates a sharing service “LUUP” that handles “electric micromobility” such as e-scooters and e-bikes, raised 750 million yen through a third-party allotment of new shares from Spiral Capital Japan Fund Ⅱ Investment Limited Partnership (Head office: Minato-ku, Tokyo; Representative: Tomokazu Okuno; hereinafter “Spiral Capital”) as lead investor, and Anri Investment Fund Limited Partnership No.3 (Head office: Shibuya-ku, Tokyo; Representative: Anri Samata; hereinafter “ANRI”), ENEOS Innovation Partners LLC. (Head office: Chiyoda-ku, Tokyo; Representative: Yasunori Yazaki; hereinafter “ENEOS Innovation Partners”), Adastria Co., Ltd. (Head office: Shibuya-ku, Tokyo; Chairman of The Board: Michio Fukuda; hereinafter “Adastria”), and several undisclosed investors.

We will continue discussions with several potential investors toward the final closing around the summer of 2021. At the same time, we will begin accepting applications from companies throughout Japan that wish to install LUUP.

List of investors in this investment round

– Spiral Capital
– ANRI
– ENEOS Innovation Partners
– Adastria
– Multiple investors (undisclosed)

Background of this investment round

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.’” Since April 23, 2021, we are operating an e-scooter sharing service under a special government measure, the first in Japan to make the wearing of helmets optional. In the future, we aim to introduce a universal mobility that can also be ridden easily and safely by the elderly and/or people with disabilities.

Currently, the company is experiencing a rapid increase in demand since the launch of the e-scooter sharing service. With this investment round, we will strengthen our organizational structure for further area expansion and functional enhancement, as well as develop safer and more convenient vehicles.

Furthermore, ENEOS Innovation Partners and Adastria are each looking to collaborate in the future. With ENEOS, we will build an energy supply system for electric micromobility, aiming to realize a society where everyone can move freely. With Adastria, we will start collaboration to provide a new means of transportation at stores.

Luup, Inc. (Head office: Shibuya-ku, Tokyo; President and CEO: Daiki Okai; hereinafter “Luup”) announces the launch of its e-scooter sharing app on Friday, April 23, 2021 at 5:00 pm. The e-scooter will be introduced within the app of the next-generation electric shared cycle “LUUP,” which has already been released. This will be the first e-scooter sharing service in Japan where helmets are optional under a special government measure. Since this service is also a demonstration experiment of new mobility, a safety workshop will be held at Miyashita Park (*1) during the Golden Week holidays from Thursday, April 29 to Wednesday, May 5.

(*1 If the state of emergency is declared, the decision to hold a safety workshop will be made in accordance with the policies of the facility holding the safety workshop and the parties involved. In case of cancellation, we will announce in advance via our corporate website and official Twitter account.)

Background

With the mission to “create an infrastructure that turns the entire city into a ‘station front,’” Luup is developing a sharing service for electric, compact, and single-passenger micromobility vehicles. 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.

Luup has been offering the “LUUP” sharing app using e-bikes since May 2020. In anticipation of the introduction of e-scooters, we developed e-bikes the same size as an e-scooter, enabling the installation of ports in space-saving locations. As a result, high-density sharing has been realized, with the highest density of ports in the available area. The introduction of e-scooters in this service is expected to provide a more convenient short-distance transportation, as well as the collection of riding data that is expected to lead to the discovery of issues for the future rulemaking for e-scooters.

The e-scooter to be introduced in the “LUUP” app is one of the electric micromobility that is widely used in the world. It has the following features and is becoming popular around the world as a new means of transportation that avoids close-contact during covid pandemic.

– There is no need to straddle or pedal, so even people in skirts and suits can ride

– Users can stop immediately when they feel danger because their feet are close to the ground

– The installed IoT device allows area-specific and user-specific control for safe driving in the future

On the other hand, e-scooters are classified as “motorized bicycles” under Japan’s current law, which imposes riding conditions that make it difficult for them to become widely used, which include: wearing a helmet, having a license plate and a side-view mirror, having a driver’s license, and riding only on the road. In an effort to optimize regulations and make rules, Luup has established an industrial association called the “Micromobility Promotion Council,” which has held discussions with related ministries and agencies and conducted a series of demonstration experiments under various conditions. The demonstration experiment plan of Luup was approved on Friday, April 23, 2021 under the “New Business Exception System” under the Industrial Competitiveness Enhancement Act, and the sharing service has now been launched.

Service Details

– Description: E-scooter and e-bike sharing app
– Available Areas: All of Shibuya, Shinjuku, Shinagawa, Setagaya, Minato and Meguro wards where LUUP is already available
– Pricing: 110 yen/first 10 minutes, 16.5 yen/minute (tax included) *Special price for the demonstration experiment
– Number of Ports: Approximately 200 of LUUP’s 300 ports in Tokyo allow users to get on and off e-scooters. The number of ports will be increased gradually.
– Number of E-Scooters: Starting with 100. The number of units will be increased gradually.
– Maximum Speed of E-Scooters: Limited to 15 km/hr
– Conditions of Use: The e-scooters must be used after (1) registering a driver’s license and (2) passing a perfect score on the test to confirm driving rules via the app. Users only using e-bikes do not need to go through these steps.
– Insurance: Property damage, bodily injury, and personal injury are covered by the insurance.
– Note: For safety reasons, we voluntarily prohibit riding on roads where there is a significant amount of vehicle traffic. Roads that are off-limits are indicated in the app, and users are urged to detour around them.

Details of the Safety Workshop to be Held at Miyashita Park

Since this service is also a demonstration experiment of new mobility, a safety workshop will be held at Miyashita Park during Golden Week from Thursday, April 29 to Wednesday, May 5.

– Content: Lecture on how to ride the e-scooter and use the LUUP app
– Date: Thursday, April 29, 2021 to Wednesday, May 5, 2021
– Time: 12:00 pm to 6:00 pm
– Location: Shibuya Ward Miyashita Park 1F, space next to adidas (6-20-10 Jingumae, Shibuya-ku, Tokyo)
– How to Participate: Please come to the venue during the event time. No prior reservation is required.
– Participation Fee: Free
– Regarding Prevention Measures against Coronavirus Disease: Masks must be worn at all times, temperature checks and alcohol disinfection to be done at the event site

If a state of emergency is declared, the decision to hold a safety workshop will be made in accordance with the policies of the facility holding the safety workshop and the parties involved. In case of cancellation, we will announce in advance via our corporate website and official Twitter account.

How to Use

1. Download “LUUP” and register as a member. App download link: https://luup.onelink.me/Myjb/cfcdb04a
2. Register your driver’s license and take the test to confirm driving rules from the Account Settings screen. It is recommended that you complete the test in advance as it may take some time for approval.
3. Locate the port where you would like to start your ride from the map screen. From the Port Details screen, you can confirm if the port has an e-scooter.
4. Press the “Unlock” button to activate the camera and scan the QR code.
5. Select the destination port and reserve a place to return the e-scooter. The destination port can be changed later.
6. Once the smart lock is unlocked, the e-scooter will emit a sound and the speed display LCD will turn on. Enjoy your ride safely.
7. Upon arrival at the destination port, please return the e-scooter within the frame line.
8. When you send the photo of your return, your payment is completed and your ride is over. *While riding the e-scooter, you can pause the ride, but cannot make an emergency stop outside of the port.

Others – User Guide for E-Scooters　https://luup.zendesk.com/hc/ja/sections/1500001008561

[How to ride the e-scooters]
1. Kick the ground for initial speed and place both feet on the e-scooter.
2. Press the throttle slowly to accelerate electrically.
3. Make a gentle turn while kicking the ground with your feet.
4. Under the new special measures, a person pushing a motorized scooter is considered a pedestrian. When making a right turn on a busy road, it is recommended to get off from the e-scooter at the intersection and push the e-scooter across the pedestrian crossing.
5. There is a brake similar in shape to that of a bicycle at hand. When stopping, brake slowly. You can also stop with your feet.

Notes

Please make sure you have proper knowledge of traffic laws and regulations before riding an e-scooter. In particular, please note the following:
– Riding on sidewalks is prohibited.
– If there is a bicycle lane on the road, please ride in the lane.
– On roads with vehicle traffic zones, you must ride in the first vehicle traffic zone counting from the left edge of the road.
– A hook turn is prohibited for LUUP’s e-scooters.

Future Plans

We will be gradually increasing the number of ports and the number of e-scooters available. We also plan to introduce e-scooters to Osaka by the summer. Through this service, we will continue to consider rulemaking for the safe and convenient social implementation of e-scooters and collect data for this purpose.

About Luup, Inc.
Luup, Inc. will create a new short-distance mobility infrastructure that makes the entire city “a station front” through the sharing business of electric, compact, and single-passenger micromobility. 2 ongoing projects include: “demonstration of a new vehicle” to safely and conveniently use new mobility such as e-scooters in Japan, and “demonstration of a new sharing service” to validate the shared mobility experience.
– Location: 16F Link Square Shinjuku, 5-27-5 Sendagaya, Shibuya-ku, Tokyo 151-0051
– Financial Institutions: Sumitomo Mitsui Bank, MUFG Bank, Mizuho Bank
– Representative: Daiki Okai
– Founded: July 2018
– Service URL: https://luup.sc/

● President and CEO of Luup, Inc.　Daiki Okai　Profile
After graduating from the University of Tokyo’s Faculty of Agriculture, Daiki worked at a strategy consulting firm, mainly in charge of PMI for listed companies and business DD for PE funds. After that, he founded Luup, Inc. In May 2019, he established the Micromobility Promotion Council, which aims to promote the social implementation of new micromobility technologies, with major e-scooter operators in Japan, and became its chairman. He was selected for “Forbes 30 Under 30 Asia” in April 2021.

Press Contact
● Luup, Inc.
Public Relations: Misato Matsumoto
E-mail: pr@luup.co.jp

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”), and Hasegawa Kogyo Co. (Head office: Osaka-shi, Osaka; President: Yasumasa Hasegawa; hereinafter “Hasegawa Kogyo”), all of which are members of the Micromobility Promotion Council (a voluntary association, Chairman: Daiki Okai of Luup, Inc.) that consists mainly of domestic e-scooter operators, have received approval for their plan to conduct a demonstration experiment of e-scooters on public roads under the “New Business Exception System” based on the Industrial Competitiveness Enhancement Act. For this demonstration experiment, the vehicle will be treated as a “small-sized special motor vehicle” under the Road Traffic Act, and several changes in driving conditions will be applied, including the optional wearing of helmets and a maximum speed limit of 15 km/h.

Details of Special Measures

Special measures below will be applied to businesses that have applied for and received approval:

– Classification under the Road Traffic Act: Small-sized special motorized vehicles (*Under the Road Transport Vehicle Act, it is treated as “e-bikes” as in the current law)
– Speed limit: limited to a maximum of 15 km/h
– Riding areas: In addition to the roadway, bicycle lanes will be available as in the previous version. In addition, “bicycle roadways” and “roadways that are one-way but allow bicycles to pass in both directions” will also be available.
– Rules for riding: The wearing of helmets became optional (wearing helmets is recommended for safety reasons). Carrying a driver’s license when riding and the purchase of liability insurance will remain mandatory.
– Vehicle requirements: The vehicle must continue to meet the security standards required for mopeds, such as the installation of license plates and mirrors.

These special measures apply only to demonstration experiments conducted under an approved new business activity plan. The above special measures do not apply to the e-scooters owned by non-certified businesses or individuals.

Overview of the Demonstration Experiment

Implementation period
– Start: After April 23rd, 2021 (the exact date depends on operators)
– End: Scheduled for October 2021

Areas of implementation
– EXx: All areas of Setagaya-ku and Shibuya-ku, Tokyo; Kashiwa-shi, Chiba; Fujisawa-shi, Kanagawa; and Toyooka-shi, Hyogo
– mobby ride: Fukuoka-shi, Fukuoka; Kobe-shi, Hyogo (TBD)
– Luup: Shibuya-ku, Shinjuku-ku, Shinagawa-ku, Setagaya-ku, Minato-ku, and Meguro-ku in Tokyo; Osaka-shi, Osaka
– Hasegawa Kogyo: Part of Chiba-shi, Chiba; Osaka-shi, Osaka

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.