E-scooter operators Neuron Mobility and Lime have withdrawn from the City of Yarra area in Melbourne following a 400 percent increase in council fees.
This comes after the Yarra City Council approved changing its contract with e-scooter operators to boost the daily fee for the e-scooters from $1 to $5 per day.
The council covers inner-city Melbourne suburbs, including Richmond, Carlton North, Fitzroy, Princes Hill, and Collingwood.
In a statement, a Neuron spokesperson said a 400 percent fee hike was “totally unsustainable.”
“Unfortunately, the figures just don’t add up. Each e-scooter in Yarra generates around $9.50 per day, but with the new $5 per e-scooter per day council fee, the remainder isn’t enough to cover staff wages, warehousing, recharging, maintenance, insurance, safety initiatives, rider education, and ongoing technology upgrades,” the spokesperson told The Epoch Times.
“It wouldn’t be fair to pass such a steep cost onto riders. Our e-scooter programs are designed to provide a convenient, affordable alternative to cars, and a massive hike like this would significantly hurt rider adoption. We remain committed to keeping our service accessible wherever we operate.”
Neuron said it was “disappointing” that some people still believed they had been making a profit in Yarra.
“This is simply not the case. Since the City of Melbourne paused its e-scooter program for a reset, trip numbers have plummeted by around 85 percent, and so has the revenue we generate from greater Melbourne.”
The spokesperson indicated that a return could be possible in the future under a broader Melbourne-wide contract but that operating under the current fee structure was not viable.
“We’re sorry that our loyal riders will be impacted, particularly those who rely on e-scooters as their primary mode of transport. Unfortunately, this situation is beyond our control,” the company said.
“We hope to return in the future, potentially as part of a Greater Melbourne contract, but for now, the fees make it impossible to continue.”
Council ‘Disappointed’ by e-Scooter Operator Decision
The City of Yarra Council confirmed that both Neuron and Lime had pulled e-scooters out of Yarra. However, the Council maintained that they would not continue to subsidise these services from ratepayer dollars.“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,” it said.
The Council noted that e-scooters would be removed but expressed optimism that new companies could emerge in the future.
“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,” the council said.
“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.”
Mayor Stephen Jolly explained that the $1 to $5 per day increase was to ensure that ratepayers no longer funded e-scooters.
At the time, he noted that if the operators did not accept the fee increase, e-scooters could need to stop operating in the Yarra area.
“If it were a nightclub or a pizza shop that didn’t clean its own mess, there wouldn’t—nor should there be—an expectation that Council would do it for them using ratepayer money.”
The council explained before the contract extensions, they were spending about three-quarters of a million dollars a year on the e-scooter program.
Jolly also highlighted that the Yarra City Council had received complaints and feedback concerning e-scooters.
“We’ve even been sent to VCAT by a disability access advocate because when e-scooters are dumped, they make our streets inaccessible,” Jolly said.
“In turn, we have had to implement measures such as geofencing to manage the parking of e-scooters, increased levels of enforcement, and meeting with residents and business owners to ensure the scheme is operating appropriately.”
