MPower Partners MPower Partners invests in newmo, a taxi and ride-sharing business

MPower Partners press release (2024.10.31) MPower Partners MPower Partners invests in newmo, a taxi and ride-sharing company MPower Partners Fund (hereinafter referred to as MPower), an ESG-focused global venture capital fund, has recently invested in newmo Inc. (hereinafter referred to as newmo), which aims to realize “sustainable regional transportation from the user’s perspective.”
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In recent years, the shortage of local transportation such as taxis has become increasingly serious. Although the number of corporate taxi vehicles increased after deregulation in 2002, it has been decreasing every year since 2008 (approximately 220,000 vehicles) and remained at approximately 170,000 vehicles as of March 2023*. The reason behind this is the increasing number of bankruptcies among taxi operators. In particular, small and medium-sized enterprises with fewer than 30 vehicles, which account for about 80% of businesses, have been hit hard by the driver shortage and high fuel prices after the coronavirus pandemic. In 2023, 33 taxi companies will go bankrupt, the highest number in the past 10 years**. Furthermore, the average age of corporate taxi drivers with Class 2 licenses is 59.7 years old, which means that the population of taxi drivers in local communities is aging, and there is no end to the decline in the workforce responsible for local transportation. The solution to this current situation is newmo, which operates a taxi and ride-sharing business with the mission of “Making communities colorful through mobility.” Established in January 2024, the company acquired management rights to two taxi companies in the Osaka area less than a year after its founding, as well as in Karuizawa in September and Nagoya and Okinawa in October. Also announced the establishment of a new company. The group has over 600 taxi vehicles and over 1,000 employees, and in addition to improving transportation access at tourist destinations, we are also promoting DX at taxi offices and improving the work style and lifestyle of drivers by strengthening business management. We are also working hard to improve standards and increase recruitment of new graduates. MPower Partners strongly sympathized with newmo’s vision of “sustainable regional
transportation from the user’s perspective” and made this investment. As the number of group vehicles increases, we will do our best to support newmo’s growth not only by supporting ESG measures such as the impact of carbon dioxide emissions on the environment and
collaboration with local communities where we operate, but also by supporting ride-sharing business strategies. (Note) (*) National Hire Taxi Federation “Taxi Today in Japan 2024”
http://www.taxi-japan.or.jp/pdf/Taxi_Today_2024.pdf (**) Teikoku Databank “Bankruptcy trends in the taxi industry”
https://www.tdb.co.jp/report/industry/v5znu878v2/ (***) Ministry of Health, Labor and Welfare “Basic Wage Structure Statistical Survey
(June 2020)” https://www.mhlw.go.jp/toukei/itiran/roudou/chingin/kouzou/z2023/index.html Release regarding this round by newmo Inc. ■ Newmo Co., Ltd. Overview Representative Director: Naoki Aoyagi Established: January 14, 2024 Address: 4th floor, Azabudai Hills Garden Plaza B, 5-9-1 Toranomon, Minato-ku, Tokyo HP:
https://newmo.me/ ■ MPower Partners Fund Overview MPower Partners Fund is an ESG-focused global venture capital fund. We are a bold, global company that takes on the challenge of solving social issues through technology, based on the belief that sustainable growth and a positive impact on society and the environment can be created by startups incorporating ESG (Environment, Social, Governance) perspectives into their strategies. We support entrepreneurs. Our team, including the founder, has members with a wealth of experience and expertise, and we will work to make Japan’s venture ecosystem more global and diverse and generate more innovation. Fund website: https://www.mpower-partners.com/ Contact for inquiries regarding this matter info@mpower-partners.com *This press release has been prepared for the purpose of providing information to qualified institutional investors and companies that are potential investment targets for the Fund, and is not a disclosure document pursuant to the Financial Instruments and Exchange Act. This does not constitute a solicitation or recommendation for an offer to purchase.