Melbourne council votes to scrap Lime ebikes after failing to meet ‘bare minimum standards’ | Ebikes

Shared e-bikes will disappear from some inner-city Melbourne streets after a council canceled a deal with Australia’s largest electric bike operator.

On Tuesday, the City of Yarra voted to end its memorandum of understanding with Lime, ending almost six years of litigation.

Although some councilors noted that shared e-bikes were an affordable and environmentally friendly transport option, others said the operator did not do enough to prevent users from blocking footpaths, trashing e-bikes or riding while drunk.

“There are two problems here: shared e-bike users who refuse to follow the rules and have no regard for others, and an operator who has demonstrated that he cannot or will not manage his operations to keep community members safe on the streets of the Yarra,” deputy mayor Sharon Harrison said.

“We must prioritize the needs of pedestrians on our footpaths, we have legal obligations and this is the result.”

Termination of the agreement means that Lime will have 30 days to terminate its operations in the area upon notice from the municipality.

The City of Yarra’s jurisdiction, which includes Fitzroy, Richmond and Carlton North, has some of the highest rates of shared e-bike use in Australia; Lime estimates that approximately 614 trips have been made each day since January 2025.

Lime earned about $2.5 million from the district, according to council figures.

However, the municipality was unable to make any profit from the e-bike program due to the terms of its agreement with the company.

“They’re actually taking the mickey,” Mayor Stephen Jolly said.

The memorandum of understanding shared was a rolling, one-year trial, and a permanent e-bike sharing scheme would allow the council to receive payment from an operator.

The council launched a procurement process in December, but Lime was the only company to apply during the tender process.

On Tuesday, council members also voted not to award the contract to Lime.

“We’re not saying no to e-bikes; people can have their own custom e-bikes,” Jolly said.

“If we have a company that comes back and meets the minimum standards, unless they are a corporate monolith waiting for an underfunded council to fund them, we will reopen the tender.”

A Lime spokesperson said the company was disappointed in the decision.

“This completely unnecessary disruption to the e-bike network across Melbourne should be avoided,” the statement said.

The geography of the area means the change could affect users living in the neighboring municipalities of Melbourne, Darebin and Stonnington.

Opposing the motion, Councilor Sarah McKenzie called for a more balanced approach to shared e-bikes.

Most users are not visitors, he said, but local residents who bike to work, public transportation or other nearby small businesses.

“Those who are against it are very concerned with user behavior, but we’re not banning cars because of user behavior,” he said. “I know the plan isn’t perfect… but I don’t think that’s a good enough reason to stop this now.”

E-bike advocates, including Streets Alive Yarra spokesman Jeremy Lawrence, have suggested the council create cycle parking spaces to prevent e-bike litter and raise revenues by charging for parking.

“By choosing to forgo potential revenue from non-resident passengers, the council encourages people to drive and therefore supports multinationals such as Saudi Aramco, TotalEnergies or Exxon Mobil.

“We believe the streets are for everyone and we must support people to use the method that works best for them.”

Surrounding councils are expected to re-evaluate their involvement with shared e-bikes in the coming months, with the City of Melbourne considering a permanent plan later in the year.