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
