A little-known startup is dominating Japan’s growing e-scooter ride market, helped by the backing of regulators who for years stonewalled sharing-economy titans Uber Technologies and Airbnb.
Tokyo-based Luup controls more than 90% of the country’s shared e-scooter market in terms of ride mileage, based on government-compiled data. The startup is now on a spending spree to help it widen its lead by doubling the number of its charging ports to 10,000 by 2025, from a current 4,900. Luup’s closest competitor, Bird’s Japan unit, BRJ, has around 300.
To that end, Luup last week said it secured ¥3.6 billion in funding, of which almost 70% was raised through a syndicated loan led by Sumitomo Mitsui Banking. That’s lifted the total amount raised to ¥12.7 billion ($83.6 million).