Electric scooter company Luup begins joint operation of service with local governments to meet local “installation” requests

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Luup, which provides short-distance mobility sharing services, will launch a new service for local governments and businesses.

Luup, an electric scooter sharing service, is launching a new service for corporations. With local governments and companies as the operating bodies, Luup will be able to introduce Luup anywhere in the country. According to Luup, many local governments and companies have expressed their desire to have Luup installed in their areas. This scheme has been realized to meet their requests.

“We want the Loop” – Companies and local governments operate some of the services

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Division of roles between the implementation site and the loop in LUUP for Community.

The new service, “LUUP for Community,” is a system in which local governments and companies that want to introduce Loop’s short-distance mobility services work together with Loop to operate the service.

Loop will provide the electric kick scooters and electric assist bicycles as well as the systems related to their use.

The companies and local governments that will be implementing the system will be responsible for providing the installation locations as well as the actual operation of the systems, such as charging the vehicles and managing their deployment.

Loop’s president, Daiki Okai,

“This is assuming that all conditions are met, but we believe we can implement it in all areas that we have been inquired about.”

he says.

Users pay Loop an initial fee and a monthly usage fee. The initial fee starts at 800,000 yen, and the operating cost is 30,000 yen per vehicle per month. According to Loop, both are trial prices and vary depending on the area where the service is being introduced.

The Loop for Community service is different from existing Loop services in that it allows users to freely set prices and installation periods. It is also possible to increase or decrease the number of aircraft according to peak tourist seasons and event periods, and to provide services for limited periods.

“For example, if you want to offer a free ride to guests in a hotel, that’s fine, but you can also set a fare structure to meet the needs of local residents, such as a higher fare for tourists and a lower fare for local residents, or even a fare similar to that of existing public transportation,” said Loop CEO Okai.

The user fee varies depending on the case, with the operating body sometimes receiving the full amount and other times splitting it with Loop.

Why we couldn’t expand into the regions despite many requests

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Luup’s representative, Okai Daiki.

Loop currently has approximately 8,100 dedicated bicycle parking spaces (ports) in 10 cities across the country.

By concentrating ports in highly populated areas such as Tokyo, Yokohama, and Fukuoka, the company has been able to provide services suited to short-distance travel.The company has received more than 470 requests a month from local governments and companies to install ports.He said.

Loop’s CEO, Okai,

“Although the reality is that there are more transportation issues in rural areas, we have not been able to expand into those areas until now. Our response was that it was difficult due to our company’s financial strength and the circumstances surrounding our dealings with the government.”

he says.

The reason why Loop has not been able to actively expand into rural areas is not just because of profitability issues. Originally, electric scooter sharing services like Loop could only be offered in areas that were certified as part of a demonstration experiment under the government’s “Special New Business System.”

This restriction has been lifted by the revised Road Traffic Act, which will change the classification of electric scooters, coming into force in July 2023. Loop has taken advantage of this legal change to explore ways to deploy electric scooters in rural areas on a trial basis, together with local governments and companies.

Okinawa resort “Very good”

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Luup vehicles. Two types are available: electric kick scooters and electric bicycles.

Kanucha Resort, the largest resort hotel in Okinawa Prefecture, began a trial introduction of the system in July 2023. The facility currently has a total of 23 units at six ports, which are used by guests and employees as a means of transportation within the facility. In the 10 months since the introduction, the total number of rides has reached 100,000.6222 timesthe average number of rides per day20 timesThe number of visitors to the facility has risen to 10,000, and a facility official said, “We think it was a great decision to introduce the system.”

In the future, they plan to expand the area of ​​use outside the facility, with the aim of improving mobility between tourist spots and shopping facilities.

Among local governments, the town of Biei in Hokkaido has introduced the system to increase transportation options as part of its measures to combat overtourism, while the town of Haga in Tochigi Prefecture, which has challenges in improving its public transportation system, has been conducting a demonstration experiment since April 2024.

Having seen a certain degree of success in multiple trial implementations, the company has now decided to officially launch the service.

“Regional transportation issues can be summed up in one word, but the emphasis of transportation issues varies depending on the area’s population, the shape of the town, peak times when people are traveling, and whether the area has a lot of factories or an area with a large elderly population. By customizing the service to address these issues and using it as a means to thoroughly resolve them, we hope to maximize the value of the town by supporting the mobility of local residents and, in particular, secondary transportation issues for tourists,” said Representative Okai.

Source: BusinessInsider

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