eBike Startup Lime Expands to Japanese Market

eBike company Lime has announced entry into the Japanese market. Lime’s Japan expansion pits the Uber-backed startup against the homegrown Luup KK.

Lime’s global fleet of ebikes and scooters currently stands at about 200,000 units. According to Yahoo Finance, the company unveiled its ride service in densely populated areas in Tokyo. These include Shinjuku, Shibuya, Setagaya, and Meguro wards.

Starting Small

Lime enters Japan’s market barely a month after unveiling ebikes for women. The company is getting into the Asian country with about 200 electric scooters and over 40 recharging ports. Tokyo-based ebike startup, Luup controls over 90% of the local market in terms of ride mileage. Luup already runs 9,100 recharging ports in the company.

Lime now has around 200 electric scooters and more than 40 recharging ports. Tokyo-based Luup, which controls more than 90% of the domestic market in terms of ride mileage, operates 9,100 ports.

“We’re starting small. We want to grow slowly with the city and really earn the trust of local regulators and city officials,” Wayne Ting, Lime’s Chief Executive Officer said.

The entry of the Uber backed escooter startup into the Japanese market is a strong indication that Japan is accepting the ride sharing economy. The country softened its stand following lengthy discussions between regulators, Luup, the police, and local governments.

Tough Restrictions

Contrary to other jurisdictions, Japan’s ebike market is experiencing growth. Cities in other countries are experiencing slowdowns due to outright bans and tough restrictions. For years, the Japanese government went slow on allowing shared e-scooter rides and stonewalled sharing economy startups like Airbnb and Uber.

This stand has since changed. Instead, the Japanese government has developed regulations that require riders to abide by local traffic rules like speed restrictions. The regulations also require e-bike riders to park in designated charging ports.

After setting up the restrictions, the country passed traffic laws last year. The new laws eliminated license and helmet requirements for e-scooter users. The regulatory and legal changes paved the way for ebike growth.

Compliance

Lime’s entry into Japan was largely incentivized by the country’s emobility framework. In 2022, the ebike startup pulled out of the South Korean market due to a lack of regulatory clarity which led to intense competition.

“The last thing we want to do is grow too fast and make you feel like it’s a nuisance. Our intention over time is to grow throughout the Tokyo metropolitan area, and potentially even look at broader Japanese opportunities,” Ting added.

Lime negotiated with officials from the Japanese government and partners to comply with local regulations and set up recharging ports. The entire process took about a year. The company also modified its scooters to include turn signals. It also installed slower riding modes, repositioned the bells, and adjusted the handlebar to make it shorter.