Tokyo-based Luup to more than double shared e-scooters, e-bikes

Luup has raised $8 million in debt and asset financing to meet the growing demands of Japan's micromobility market, which is projected to reach $11.6 billion in 2030.

As international travel begins to pick back up, Luup will use the proceeds to expand its service to cities across the country, targeting both large and small touristic cities. Luup will more than double its fleet size within the next month, but Okai wouldn't say which cities the company hopes to expand to.

Luup launched its shared e-scooters and shared e- bikes in April and May of 2020. The company has more than 2,000 e-scooters and e-bikes in its possession, and it expects to have 5,000 by May.

The company currently services Tokyo, Osaka, Kyoto and Yokohama, and it uses a slightly different business model to other shared micromobility players internationally.

Luup's vehicles are dockless, but not free-floating. Luup relies on a system of ports, which are delegated parking spots for the startup's vehicles, because it's illegal to park vehicles just anywhere in Japan. Luup's app lets riders check the available ports in real-time to reserve a port.

The company has a total of 1,100 ports in Japan, but wouldn't say how many it wants to line up for in the coming months. Micromobility companies in Japan have a unique kind of land grab.

It is not possible to operate e-scooter sharing in a dockless model in Japan. We are trying to get as much land as we can now.

Japan is working on easing regulations. The maximum speed of e-scooters is restricted to 15kph and riders must have a driver's license. In March, a bill amendment to the Road Traffic Act was submitted to Japan's parliament, the National Diet, to allow e-scooter users to ride at a maximum top speed of 20 kilometers per hour without a license.

Luup competes with global and local micro-mobility companies.

The company raised a $16 million Series C equity round eight months ago.

The new capital was led by Japan Finance Corporation, a Japanese government-backed financial institution.

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