Melbourne Bans E-Scooter Rentals From CBD on Safety Worries

(Bloomberg) -- Melbourne’s city council voted to ban rented electric scooters from the central business district, saying they posed unacceptable risks to public safety and were linked to anti-social behavior.

The council has given operators Lime, backed by Uber Technologies Inc., and Singapore-based Neuron Mobility 30 days to remove their scooters from the city center, ending their contracts six months early, local media reported. A trial of the vehicles has been running in the Australian city since February 2022. 

“The safety of Melburnians is being constantly jeopardised by riders doing the wrong thing – riding on footpaths, double-dinking, riding without helmets and riding under the influence,” Lord Mayor Nicholas Reece said in an emailed statement Wednesday. “E-scooters are thrown across our footpaths, parks and public spaces – creating trip hazards.”

The growing popularity of electric scooters as a mode of urban transport has been mirrored by a related surge in injuries and hospital admissions, usually involving young males, according to a University of New South Wales study earlier this year. Paris last year became the first European capital to outlaw rentals following a referendum in which over 90% of people voted for a ban. 

While personal electric scooters remain illegal in Sydney, the NSW state government said in July it was working with councils on trials of rental schemes. Private ownership of the vehicles remains legal across Melbourne, but users are banned from riding on footpaths and are subject to speed limits.

Election ‘Politics’

“Unfortunately, election year politics played a significant role in this sudden and unexpected pause,” a spokesman for Lime said in a statement, referring to council ballots this October. “We do not expect this isolated decision to influence officials beyond Melbourne, as we’ve seen tremendous momentum in cities embracing shared e-scooters globally.”

Lime, which also operates electric bike rentals, said earlier this year it was planning to invest more than $55 million on expanding its global fleet, including across Australia. Uber owned around 29% of Lime as of late last year.

“We are deeply disappointed that a slim majority of City of Melbourne councillors (six votes to four) made the unexpected decision to cancel the city’s e-scooter programme without conducting any of the necessary considerations and evaluations one would expect,” a spokesperson for Neuron Mobility said in a statement.

(Updates with Lord Mayor’s comment in third paragraph)

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