Luup (Loop), which aims to create infrastructure that makes "the entire city feel like a station," offers a sharing service for electric micromobility such as electric kickboards and electric-assist bicycles. Leading this startup, which has rapidly grown into a company of 70 employees in just five years while raising significant funds, is President and CEO Daiki Okai. With new traffic rules being established and further proliferation of electric micromobility expected, we asked Okai about the key points in choosing an office for a rapidly growing startup and creating a workplace environment, especially after overcoming challenges in business expansion and the difficulties of moving offices, leading to the choice of a "setup office" equipped with interior and furniture.

“The LUUP sharing service for electric kickboards and electric-assist bicycles began in May 2020 in Tokyo with about 50 ports, offering only electric-assist bicycles. For electric kickboards, we participated in a demonstration experiment on public roads starting in April 2021, in preparation for rule-making by relevant ministries. Currently (as of August 2023), the service has expanded to 8 cities and approximately 4,000 ports. I imagine there have been many difficulties and challenges in expanding the business; how did you overcome them?”

“The biggest characteristic of Luup's electric micromobility sharing business is the large number of stakeholders involved. We have been in continuous discussions with users, the government, police, local authorities, and neighborhood associations to ensure safety as transportation infrastructure. To address the challenges and issues that arose, we have made various improvements to both hardware and software.”

“In fact, LUUP's electric kickboards have been updated more than 14 times. For example, we've added turn signal sounds for safety, changed the vehicle color to a combination of white and LUUP GREEN that is visible at night yet doesn't spoil the scenery, and made numerous other updates.”

“What are the benefits for those who install the ports?”

“There are three main benefits. The most significant is enhancing the convenience for users and residents, as I mentioned earlier. Whether it's an apartment building, hotel, or office, installing a port makes it easier to travel to places that were previously a bit far to walk to, making life as convenient as being 'near a station.' For apartment buildings, it could become a selling point, such as, 'With LUUP, you can reach XX station in just a few minutes.'”

“Secondly, the areas where ports are installed become cleaner. Recently, we've seen an increase in port installations at banks, and we often hear stories about how installing a port has resolved issues like illegal dumping or areas becoming gathering spots for smokers. Not only do people who violate rules stop coming, but Luup's operational staff also regularly patrol and check the ports, which contributes to this improvement.”

“And finally, it contributes to CO2 reduction. It's estimated that Luup's electric kickboards consume about one-fortieth the energy per person per kilometer compared to cars. We frequently receive inquiries from real estate owners who want to contribute to SDGs.”

“Many startups struggle with securing funds and talent as they expand. How has Luup managed in this regard?”

“Of course, it has been a continuous struggle. To begin with, it's a costly business model requiring development of both hardware and software. In fact, for the first two years after founding, our sales were almost zero. From the outset, our strategy wasn't to start the business as a moped service before the laws were in place. Instead, our policy was to develop products suitable for the regulations that the government would eventually establish for electric micromobility and then offer the service. With the revised Road Traffic Act coming into effect in July 2023, we have only just been able to truly launch the business.”

“In April 2023, we raised approximately 3.8 billion yen through third-party allocation from venture capital firms and large corporations, bringing our total funding to about 9.1 billion yen. To grow into a company that reliably generates profit, we want to invest funds directly into products and talent. Therefore, we aim to keep office rent, which represents a significant portion of fixed costs, as low as possible.”

“Could you tell us about Luup's office history from its founding to the present? As the business grew and the number of employees increased, did the office also expand?”

“Yes. When we founded the company in 2018, we rented an office in the area between Shibuya and Ebisu. Later, as the team continued to grow, we shifted to a remote work-centric model during the pandemic and moved into a co-working space in a building near Shinjuku Station. At that time, we considered renting a dedicated office, but we chose a co-working space with less risk, thinking about what would happen if the situation prolonged. It happened to be a time when many large companies had vacated their spaces due to the pandemic, allowing us to occupy a private room for dozens of people within the co-working space. We could also freely use the common areas and meeting rooms, so it was the best choice at the time.”

“What prompted you to leave that co-working space?”

“Simply put, the number of members rapidly increased, and we wanted an environment where everyone could work on a single floor. Even with remote work becoming the norm, if members come to the office occasionally, and they are working in co-working spaces spread across multiple floors, opportunities for them to interact decrease even further. Startups experiencing rapid growth often double their members in a year, leading to a situation where many new faces are unfamiliar to existing employees. I believe that simply working in a space where only the members on one floor gather, and knowing everyone's face and name, significantly lowers the psychological barrier to seeking help when needed.”

“Another reason was that as more companies gradually moved into the co-working space, it became difficult to book meeting rooms. We often couldn't reserve a room at short notice and had to use meeting rooms on different floors, which was burdensome for our members. For these reasons, in the fall of 2022, we moved to our current location, 'AKIHABARA CENTRAL SQUARE,' which is a 5-minute walk from Akihabara Station.”

“This office is a 'setup office,' meaning the interior and office furniture are already prepared by professionals. Why did you choose a setup office for this move?”

“As I mentioned earlier, we wanted to minimize office-related expenses. Like many startups, we initially looked for a second-hand office with some existing interior and furniture. Our ideal was a spacious single-floor unit with multiple meeting rooms, but such affordable properties are rare (laughs). It was then that Sun Frontier Real Estate proposed a setup office. I wasn't aware of setup offices, but the more I heard, the more I realized the cost savings, both financially and in terms of human and time resources, so we decided to go with it.”

“The cost savings on furniture were particularly significant. We had gotten rid of all our furniture when we moved from our first office to the co-working space, but with a setup office, we didn't need to buy any new furniture. Also, if we were to arrange the furniture and interior ourselves, it would involve getting multiple quotes from specialized vendors, internal approvals, and other time-consuming processes. All of that was eliminated. We compared the cost of buying used furniture with the initial cost of the setup office, and with just a simple proposal, it was approved by the board. We have stylish, functional furniture from the start with minimal investment. That was a great help. I suspect many startup entrepreneurs face similar challenges, so I highly recommend it.”

>The information site for second-hand and setup offices, "Sonomanma Office," ishere

“What was the process like for selecting the office, signing the lease, and moving in?”

“Actually, I handled almost everything myself (laughs). Normally, this kind of project, which involves significant funds over a two-year lease, including initial costs, would be handled by the president's office staff or a dedicated office relocation team. But we are a lean team, and it was an extremely busy period, so we didn't have time to spend on selecting an office or furniture. In this case, by just communicating with Sun Frontier Real Estate, the process went smoothly, and we were ready to work in the new office within one to two months of the initial meeting. This is much faster than the usual three to four months.”

“Furthermore, not having to restore the premises upon vacating is a major advantage. Startups grow rapidly, so the likelihood of staying in the same office for 10 years is almost zero. Luup's team has grown to about 70 people in five years, and some are working in the office. Considering the ability to move out without incurring additional costs in the future, a setup office seems to be the optimal solution for a rapidly growing startup.”

“It's been less than a year since you moved to your current office. What changes have you observed?”

“Previously, at the co-working space, while it was conveniently located near the station, there were hardly any opportunities for members to go out for meals or drinks after work. Of course, that was fine, but our current office is within walking distance of Akihabara Station, and there are plenty of cafes and izakayas along the way. Naturally, we started taking breaks at cafes during work and going out for drinks with members in the evenings. Although, I haven't been able to join much myself due to being busy, according to what the members tell me (laughs). We also partnered with a nearby cafe to offer our members unlimited coffee, creating a new employee benefit service in collaboration with the local community.”

“Has the setup office had any positive effects on your team members?”

“The setup office has stylish and user-friendly interiors and furniture, which naturally creates an atmosphere that makes members want to come to the office. From a workspace perspective, I believe the main rival to the office is 'home.' At home, individuals can invest as much as they want, buying ergonomic chairs for back pain or setting up multiple monitors to create their ideal, comfortable work environment. I think this office has a level of comfort that rivals that of home.”

“By the way, I'm not necessarily encouraging everyone to come to the office. Regardless of the environment, I just want them to work in a way that best achieves Luup's mission. I want them to find the right balance between coming to the office and communicating with colleagues, and focusing on their work through remote work, to maximize their performance.”

“I imagine you also use the office for client meetings, media interviews, and recruitment interviews. Have there been any benefits from the setup office in your interactions with external parties?”

“Having multiple meeting rooms in our own office has made it easier to book them, streamlining our operations. Our sales team members are happy to be able to invite clients to an office with a clean interior. Also, previously, we had to rent meeting rooms in the co-working space for interviews, but now we conduct them all in our office. As you can see today, we can shoot in front of LUUP vehicles at any time. We've also started posting photos of our office interior on our recruitment website. When potential hires comment, 'Your office is beautiful,' I'm happy to reply, 'But it's actually quite affordable!' (laughs).”

>The information site for second-hand and setup offices, "Sonomanma Office," ishere

“Investors, as well as job applicants, pay close attention to where management invests its money. By choosing this office, we can confidently state, 'We've made only the necessary minimum investment in the office, and all the rest goes to our members and products!' This is important for conveying our stance to investors and other stakeholders. We want to work with people who resonate with this approach and are motivated by the desire to 'realize the vision Luup envisions.'”

“Finally, could you share Luup's future outlook?”

“First, we want to focus on raising awareness about the revised Road Traffic Act. The Road Traffic Act itself is quite complex, and I feel that even people don't fully understand the safety rules for bicycles, which have existed for decades. We will continue to make efforts to communicate these rules clearly so that more people can use LUUP safely.”

“Furthermore, taking advantage of this legal revision, we plan to expand LUUP to regional cities and tourist destinations, which have been frequently requested. There are urban areas with too many tourists and insufficient buses, while on the other hand, there are remote islands with infrequent bus services and inconvenient transportation. We want to solve these transportation infrastructure challenges across Japan with LUUP.”

“In the medium to long term, as a mobility company, we aim to create value for our users beyond just transportation infrastructure. Major railway companies today are broadly involved in advertising, real estate development, commercial building operations, and entertainment businesses. We want to explore the possibilities unique to the mobility business, which can extend into various aspects of daily life.”