KDDI catches the Lime bug as scooter revolution drives forward

KDDI has announced an investment in Neutron Holdings, the company which owns the Lime scooter sharing service which is becoming increasingly popular around the world.

With more people living in cities than ever before, new solutions to move said people around cities are needed. Most urban centres do not have the most helpful public transit systems and it is becoming increasingly impractical for everyone to drive. Transport sharing initiatives are one way to fix the problem and Lime is presenting a popular solution.

Some might not be familiar with the business, but they might well have spotted a stray electric scooter on the pavement. These are just obstacles for pedestrians to navigate, but an alternative means for anyone to speed up the commute. Beating Connie home to ensure the linens are fresh and clean could be so much easier.

By downloading the Lime app, users can locate the nearest free electronic scooter through an embedded mapping feature, before paying for the service through a QR code or entering a six-digit code located on the scooter. Each ride costs $1 (roughly) irrelevant of the length.

After being founded in San Francisco in 2017, the Lime bug has been catching worldwide. The main footprint is in the US, though the scooters can be found all over Europe, as well as in South America (Uruguay and Mexico), Singapore, Australia and New Zealand. The idea of ‘mobility as a service’ is certainly catching on.

As part of this investment, Lime will also join the newly-developed Smart EAST project in the city of Fukuoka. The city is often referred to as the most innovative in Japan and will be the first in the country to host a Lime scooter ride. Alongside fellow project sponsors Digital Garage Co. and KDDI, the aim is to ‘create a model city with comfortable, high quality lifestyle options and intelligent use of urban space through the introduction of cutting-edge technological innovation’.

“We’re thrilled to be working with the Smart EAST project to bring our electric scooters to Japan for the very first time,” said Mitchell Price, Lime’s GR and Policy lead in Asia Pacific. “Fukuoka is a city focused on the future, and with Lime electric scooters riders will be able to unlock sustainable urban mobility like never before.”

What is worth noting is that the firm might come under some criticism before too long. Although it is a creative way to answer the mobility challenge in increasingly congested urban environments, they are proving to be a nuisance occasionally. In some cities it is illegal to ride scooters on the pavements, tickets for the offence in Los Angeles increased by 1815% between January and July 2018, while some are also frustrated by the scooters being discarded willy-nilly with no consideration to others.

This is not necessarily surprising as there are no rules to dictate the practice of riding a scooter. City officials might well have ignored these ‘vehicles’ in by-gone years, simply because there weren’t enough to justify any serious consideration. However, should trends continue on the same trajectory, a conversation will certainly need to take place.

Arguably Uber kicked-off this revolution, though KDDI is looking to cash-in on a trend which is spreading to all forms of transport very quickly.

Funded through the KDDI Open Innovation Fund (KOIF), the aim of this venture is to invest in start-ups both domestically and internationally which are using connectivity in a way outside the norm. KOIF Number 3. was first launched in April 2018 alongside Japanese venture capitalist firm Global Brain looking into firms in fields such as AI and IoT, areas where 5G can compound growth potential.

KOIF Number 3. will run through to 2028 with 20 billion Japanese yen to play around with, focusing primarily on the Japanese, US and South Korean markets. Of course, this is an investment opportunity, though the investment will also present collaboration opportunities with KDDI and the other start-ups which the fund has invested in.