E-scooter operators Lime and Neuron are set to cease operations in Melbourne’s City of Yarra following a dramatic increase in council fees.
The Age reported that the operators have labelled the council’s decision to raise daily per-scooter fees from $1 to $5 as “totally unsustainable.”
The two companies will withdraw their combined fleet of 500 e-scooters by early April.
Mayor Stephen Jolly told the Age that it wasn’t the Council’s intention to force the operators out.
The Council has issued a statement expressing its disappointment in the decision, but says that it will not continue to subsidise the services from ratepayers’ money.
The statement goes on to say: Council has gone above and beyond to try and make the scheme work and understands many in the community will be disappointed at this decision.
We will work with the operators to transition scooters out of the City in the next few weeks, as well as proceed with the procurement process for a new e-Scooters contract.
We are confident that any company who bids will do so knowing the expectations of Council and its residents on how the scheme needs to operate.
Neuron and Lime’s e-scooters will be removed over the coming weeks, but Lime’s e-bikes will remain in place.