Two major e-scooter operators, Lime and Neuron, are set to withdraw from the City of Yarra following a significant fee increase imposed by the council. The decision comes after the council voted to raise the daily fee per e-scooter by 400%, from $1 to $5, deeming the previous rate unsustainable for the council’s management costs.
Neuron Mobility was the first to announce its exit from Yarra, encompassing areas like Richmond and Fitzroy, citing the lack of feasibility in continuing operations under the new fee structure. Lime swiftly followed suit, confirming the removal of its e-scooters from Yarra by next month, leaving only the City of Port Phillip with an ongoing e-scooter trial.
Yarra council defended its fee hike, stating the need to cover expenses related to managing e-scooters, such as setting up parking bays, communication efforts, enforcement activities, and legal matters. The council estimated a significant budget allocation of $750,000 for e-scooter management this fiscal year, a cost it sought to offset through increased operator fees.
Neuron criticized the council’s decision, expressing disappointment in the lack of consultation and the financial burden imposed by the escalated fees. The company highlighted the discrepancy between its revenue and the operational costs, emphasizing the adverse impact the fee hike would have on riders and the overall e-scooter program’s sustainability.
City of Yarra Mayor Stephen Jolly expressed confidence in attracting new e-scooter operators to replace Lime and Neuron, assuring residents that e-scooters would return to the area in the future. Jolly emphasized the importance of e-scooters as a sustainable transportation option and dismissed claims that the council’s fees were unreasonable.
Despite the setback, the council plans to initiate a procurement process for new e-scooter contracts in the upcoming weeks, with revised agreements anticipated to be finalized by September. Jolly acknowledged the disappointment some residents may feel over the abrupt exit of e-scooter companies but remained optimistic about the future reintroduction of e-scooter services in Yarra.
The Victorian government has been supportive of e-scooter initiatives to promote active transport, with trials initiated in Melbourne, Yarra, and Port Phillip councils in 2022. New legislation introduced in October aimed to establish permanent e-scooter schemes and enforce penalties for unsafe riding practices.
While the City of Yarra faces the departure of Lime and Neuron, other councils like Merri-bek, Darebin, and Moonee Valley have expressed interest in launching e-scooter hire programs. Public and Active Transport Minister Gabrielle Williams encouraged Yarra to reconsider its decision, underscoring the popularity and safety benefits of e-scooter schemes in Melbourne.