Article by: anees

The August 2022 issue of Forbes JAPAN, which is on sale, features "rule making" as a means of creating new markets necessary for Japan.

 Regulatory updates are inevitable to bring about social change at the infrastructure level. One example is the revision of the Road Traffic Act passed by the House of Representatives in April 2022. Luup, which handles the sharing service of electric kickboards, led the series of rule-making that led to the revision of the law. What is the significance and value of rule-making that has been reached through steady trial and error? Daiki Okada, President, and CEO reveal his true intentions.

Electric kickboards are becoming more common in the Tokyo metropolitan area and Kansai. It seems that many people use it casually without wearing a helmet, but in fact, this is a limited special measure. This is because the electric kickboard is treated like a motorized bicycle under the current law. Helmets are not obligatory only if the certified business uses the sharing service that is being developed as a national demonstration project in a specific area.

But things are about to change. This is because the law revision was realized as a result of the rule-making that the related businesses have promoted, including this demonstration project. In April 2022, a bill to amend the Road Traffic Act was passed by the House of Representatives, and a new vehicle category called "Specified Small Motorized Bicycles" was set up mainly for electric kickboards. Under the speed limit of 20km / h on the road and 6km / h on the sidewalk, if you are 16 years old or older, you do not need a license and you can wear a helmet as you like.

Luup President and CEO Daiki Okai led the series of rulemaking that led to the revision of the law. The company is a start-up company that provides shared services for electric kickboards and small electrically power-assisted bicycles. Okay graduated from the Faculty of Agriculture, University of Tokyo, and after working at a strategic consulting firm, started his own business in July 2018 in his mid-20s. At present, the cumulative amount of funds raised is about 4.6 billion yen, which is highly evaluated by investors.

At first glance, it may seem that an up-and-coming young entrepreneur has set out to pursue business opportunities. However, the reality was that it was a difficult road to follow by believing in the social value of one's business.

Behind Luup's electric kickboard sharing business is the vision of evolving Japanese cities by arranging small electric mobility and ports (bicycle parking lots) in the city. "Japan developed railroads at an early stage and formed an overwhelmingly convenient and huge public transportation network. In a way that complements this, it is a means to move beyond that smoothly and efficiently. If it becomes widespread, the society will become more prosperous, "says Okai.

Beyond that, we are looking at the possibility of electric mobility as a measure against aging. If there is an electric car body that can be easily handled even by people without physical strength, and if it can be combined with IoT to help grasp the state of the car body and maintain it, or if it is possible to realize an inexpensive mobility service that can support safe driving by remote control. It will be a great help to the lives of the elderly and the vulnerable. The electric kickboard, which is beginning to spread all over the world, was positioned as a stepping stone.

Start close to pre-payment

The first wall I encountered when considering the social implementation of electric kickboards was that there were no rules in place regarding electric mobility in the first place. Treating an electric kickboard the same as a moped is "a dangerous standard that is too fast even in the world." On the other hand, in the early days of electric kickboards, car bodies that did not meet safety standards were on the market without the legal status being known.

"If a major accident occurs without regulations that match the actual situation, it will adversely affect the spread of electric mobility itself as well as kickboards. Avoiding the future where elderly people should be able to live more prosperously. For that reason, there was a great sense of crisis that we had to set rules for the safe use of the electric kickboard and immediately create an environment where the offending aircraft was not running or could not run. "

However, the process was also It wasn't easy. First of all, it was necessary for the ministries and agencies that have jurisdiction over related laws and regulations, such as the National Police Agency and the Ministry of Land, Infrastructure, Transport, and Tourism, to understand the issues and proceed with discussions and procedures, but the hurdles were high. "

"Electric kickboards are like toys, depending on how you look at them. It was a lot of work to get people to understand that they are effective for social issues in Japan and worth discussing rulemaking," Okai said. As he says, it seems that the start was close to paying in advance.

It was the local government that turned to overcome this hurdle. There is a strong sense of ownership regarding the aging population and declining population, and there is a great need for new mobility services as a living infrastructure for residents. I didn't have a clue, but I contacted people who could hear the voices of local people, such as chiefs, local council members, and influential people in the neighborhood association, on SNS and went to meet directly with an electric kickboard. I did.

He traveled all over the country to propose and discuss how they could cooperate in solving their problems, and in some cases repeated small-scale demonstration experiments. As a result of the accumulation, in April 2019, it announced that it would conclude a cooperation agreement with five cities and towns nationwide, carry out a demonstration project to verify the safety and convenience of electric kickboards and collaborate on urban development measures. The heads of each city and town and executives also attended the press conference.

Okay says, "This impact was particularly big." Major media widely covered it, and the sense of issues in transportation infrastructure in local administration and expectations for electric mobility were conveyed in the voices of the parties concerned. It was an opportunity for me to do it. " Amendment of the Road Traffic Law.

Concerning Electric Kickboards Passed at the plenary session of the House of Representatives on April 19, 2022. Electric kickboards that meet certain requirements, such as a maximum speed of 20km / h or less, will be positioned in a new vehicle category from the conventional "motorized bicycle" to "specific small motorized bicycle". If you are 16 years old or older, you can ride without a license. Wearing a helmet is a mandatory effort. In addition to the roadway, you can also drive on a bicycle lane and a bicycle path. Enforcement is scheduled to be within 2 years。

Demonstration experiment for demonstration experiment

At the same time, to promote discussions with each ministry and agency speedily and efficiently, there was also the issue that it was necessary to unify the contact points on the business side and promote the creation of a sound market for the entire industry. Therefore, Okai led the establishment of an industry group involving related businesses that can share the awareness of issues, and in May 2019, he established the "Micro mobility Promotion Council" and became the chairman himself.

"In the first place, Japan has a high hurdle for a demonstration on public roads, which is essential for revising the Road Traffic Act. It is necessary to repeat demonstration experiments on private land to safely conduct demonstrations on public roads, and who should give permission? There was also the issue of whether or not it was possible. The establishment of a system that allows the industry as a whole to carry out initiatives that are calculated backward from each issue has increased the sense of speed. "

With the two elements of cooperation with local governments and the establishment of industry groups, full-scale discussions with related ministries and agencies accelerated at once. After that, a demonstration project under the control of the government was launched without a pause. In October 2019, a demonstration plant for the implementation of the electric kickboard sharing project by the companies participating in the council was based on the Act on Special Measures for Productivity Improvement. Received the certification of "New Technology Demonstration System" (regulatory sandbox system). Various demonstration experiments were conducted on a pseudo-public road on the campus of the university.

In response to this, in October 2008, the "new business special system" based on the Industrial Competitiveness Enhancement Law approved the demonstration experiment plan on public roads (limited to specific areas), and the demonstration experiment proceeded to the next phase. Initially, the car body was treated as a moped, and special measures were taken to allow the bicycle lane to run at a speed limit of 20km / h, but this was demonstrated by a rental method rather than a sharing service.

However, in April 2009, we moved to a demonstration experiment with a sharing service that treats the vehicle framework as a small special vehicle (speed limit 15km / h), and wearing a helmet is optional. After analyzing the data obtained in a series of empirical experiments in detail, the government has come up with the optimal solution at present, which is the content of the law revision explained at the beginning.

Okay is not aware that he used entwined hands and missiles in the rule-making efforts so far. He said he didn't have a "teacher" and he didn't have any connections with parliamentarians or bureaucrats. It is a true feeling that he has been groping for the necessary processes through trial and error to realize his vision.

"Rule making is tough, so I think,' If you don't have to do it, it's better than that.' However, certainly, the number of technological innovations that do not require changing existing rules is decreasing, and management It may be the time when we have to treat it as an important theme

On the other hand, many point out mainly safety concerns. The revised Road Traffic Act is expected to be effective within two years, and detailed rule discussions will continue. On the business side, the council will lead in proposing the creation of unified standards for safety measures in terms of hardware and software.

In the future, Okai plans to step into the area of ​​urban planning, which is deeply involved in the usage environment of small electric mobility, and patiently work on rule-making from a long-term perspective. Believing in the value of his business has not shaken his determination to complete.