News On Japan

Inside Luup: The Secret Behind Japan’s Fast-Growing Electric Scooter Network

TOKYO - Japan is facing a growing transportation dilemma. While a record number of foreign visitors in 2025 has fueled congestion and traffic jams in major cities and tourist destinations, many rural communities are grappling with the opposite problem: shrinking populations and aging residents are making it increasingly difficult to maintain public transportation services.

Against this backdrop, mobility startup Luup has emerged as one of Japan's fastest-growing transportation companies, offering shared electric scooters and bicycles as a potential solution to both urban and regional transportation challenges.

The company, founded in 2020, has rapidly expanded its footprint across Japan. Despite entering the market later than some competitors, Luup now boasts the largest network of rental and return stations, known as "ports," in the industry. In March 2025, the company's user base surpassed six million people, with approximately 70 percent of riders in their 20s and 30s.

For many users, the service offers a convenient alternative to trains, buses and taxis. A trip from Omotesando to Shibuya, for example, can take less than 10 minutes and cost around 270 yen. Riders pay a base fee of 50 yen plus 20 yen per minute, picking up vehicles at one port and returning them to another.

Some commuters say Luup fills a gap left by traditional public transportation. Others appreciate the flexibility, particularly when bus schedules are inconvenient. With vehicles capable of traveling at speeds of up to 20 kilometers per hour, many users rely on the service almost daily except during rainy weather.

At the center of the company's growth is CEO Daiki Okai, a 32-year-old graduate of the University of Tokyo. Okai founded Luup with five friends from a university dance club, three of whom remain part of the management team today.

The company now operates approximately 50,000 vehicles, all of which undergo regular inspections and maintenance at dedicated facilities. Safety has become a top priority as Luup seeks to establish itself as a permanent part of Japan's transportation infrastructure.

The rapid spread of electric scooters, however, has not been without controversy.

Accidents involving riders have drawn increasing public scrutiny. In one incident, a rider traveling the wrong way on a one-way street collided with a pedestrian, causing serious injuries. Social media users frequently criticize the service, describing scooters as dangerous and calling for stricter regulations.

Taxi drivers and motorists have also expressed concerns, arguing that scooter riders can be unpredictable in traffic. Pedestrians often complain about scooters passing too closely on sidewalks and shared spaces.

Okai acknowledges that safety has become the company's greatest challenge.

"If I have any regrets, it's that we could have focused even earlier on safety measures," he said. "There is no growth without safety."

In response, Luup has intensified efforts to improve rider education, vehicle design and operational oversight.

The company has continuously refined its vehicles based on user feedback gathered through its smartphone app. Over the past six years, Luup has introduced 12 major redesigns for its bicycles and 16 for its electric scooters. Unlike traditional vehicle manufacturers, which operate on longer product cycles, Luup can rapidly upgrade equipment because it controls both the vehicles and the sharing network.

The company's mission extends beyond urban transportation. Okai says his vision is to create infrastructure that effectively turns entire neighborhoods into transportation hubs.

That ambition was inspired in part by his grandmother's experience. Care workers visiting her home often struggled to find reliable transportation, highlighting the difficulties faced by Japan's aging population.

The company's growth accelerated during the COVID-19 pandemic as people sought alternatives to crowded public transportation. A major boost came in 2023 when revisions to Japan's Road Traffic Act allowed people aged 16 and older to ride qualifying electric scooters without a driver's license.

Today, Luup operates approximately 17,000 ports across 18 prefectures, including Hokkaido and Okinawa. The company has expanded more rapidly than rivals such as bike-sharing services and SoftBank-backed Hello Cycling.

One key to that expansion has been Luup's aggressive strategy for securing port locations. Even a single parking space next to a convenience store can become a valuable pickup and drop-off point. Company staff race to identify available spaces and sign agreements with property owners before competitors can do so.

The approach has enabled Luup to build a dense network of ports throughout urban neighborhoods, apartment complexes and commercial districts, creating a convenience advantage that competitors have struggled to match.

Looking ahead, the company is preparing its next phase of growth with the introduction of Unimo, a three-wheeled seated electric vehicle unveiled in 2025. Designed to be accessible to everyone from young adults to senior citizens, the vehicle could help address mobility issues in areas where public transportation is limited and elderly residents depend heavily on cars.

Japan has also seen a rise in fatal traffic accidents involving drivers aged 75 and older, often linked to cognitive decline and pedal misapplication. Luup hopes vehicles such as Unimo can provide a safer alternative while preserving mobility for older citizens.

Whether Luup ultimately becomes a vital transportation solution or remains a controversial presence on city streets may depend on its ability to convince the public that safety can keep pace with growth. For Okai and his company, the challenge now is no longer expansion alone, but earning the trust needed to become part of Japan's transportation future.

Source: テレ東BIZ

News On Japan
POPULAR NEWS

Two typhoons moving across the Pacific southeast of Japan are expected to remain well away from the Japanese mainland, but powerful swells could bring rough seas to a wide stretch of the country's Pacific coastline throughout the three-day holiday weekend, according to forecasts updated at 3 a.m. on October 10.

A series of cyberattacks has disrupted business operations and exposed millions of customer records across Japan, with a ransomware attack on a cloud service provider affecting 495 companies and local governments nationwide, while convenience store operator Lawson has disclosed a separate breach involving more than 2.15 million personal information records.

Japan's first 360-degree projection mapping show will open at the Osaka City Museum of Fine Arts on October 10, transforming the historic building into an immersive world of light, music, and seasonal imagery, with organizers hoping the attraction will also help stimulate the city's nighttime economy.

Tokyo University of Science professor emeritus Kenzo Soai has been awarded this year's Nobel Prize in Chemistry together with French chemist Henri B. Kagan for discoveries that transformed scientists' understanding of how chemical reactions can favor one of two mirror-image forms of a molecule.

The US military suspended activities by all forces stationed in Okinawa for 48 hours from noon on October 7, an unusual measure following the arrest of a US Marine in connection with a robbery and murder case that has renewed scrutiny of crimes involving American service members.

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo stocks fell sharply on June 26 as investors locked in profits from Japan’s record-setting AI-driven rally, with SoftBank Group and chip-related shares leading a broad retreat after reports that OpenAI may delay its initial public offering.

Japan recorded a current account surplus of 4.062 trillion yen in August, an increase of 12% from a year earlier, driven primarily by a sharp rise in income from overseas investments, even as higher crude oil prices pushed the country's trade balance into deficit.

Household spending in Japan fell 3.1% in August from a year earlier, marking the ninth consecutive month of decline as rising food prices continued to weigh on consumer budgets, according to the latest household expenditure survey released by the Ministry of Internal Affairs and Communications on October 9.

Tokyo stocks ended nearly unchanged on August 12, with the Nikkei 225 at 66,988.82, as gains in energy and financial shares offset weakness in electronics and pharmaceuticals while investors weighed higher crude oil prices, a weaker yen and growing expectations for another Bank of Japan rate increase.

Japan is entering a more difficult phase in its cybersecurity challenge, as a succession of major data breaches and ransomware attacks exposes weaknesses not only in corporate IT systems but also in supplier networks, governance structures and operational resilience.

Japan's four largest beer makers were subjected to simultaneous compulsory searches on October 7 over suspicions they coordinated wholesale prices for beer and other alcoholic beverages, in a rare cartel investigation that could lead to criminal charges.

Tokyo stocks fell on October 7, with the Nikkei 225 closing at 70,036, down 648 points, as investors took profits in semiconductor and artificial intelligence-related shares after the index’s rapid climb above 70,000 earlier in the week.

Japan's prolonged period of rising prices is continuing to squeeze households and businesses, driven by the weak yen, higher raw material costs and rising wages, forcing consumers to change how they shop and cook while companies search for ways to contain costs without losing customers.