Rental E-Bikes Surge in Australia as E-Scooter Safety Fears Stall Growth
The rental e-bike market in Australia is experiencing a significant boom, driven by a sharp decline in e-scooter hire operations amid widespread safety concerns. This shift has been particularly pronounced in Sydney, where the number of e-bikes on streets nearly doubled in 2025, largely due to aggressive expansion by US operator Lime.
E-Scooter Setbacks and Regulatory Crackdowns
Initially, e-scooter hire schemes gained rapid traction across Australian capital cities, with all except Sydney permitting them by early 2025. However, operations stalled over the year as safety issues led to crackdowns, reduced access, and waning popularity. Major operators Neuron and Beam reduced their combined fleets by nearly 10% to around 12,500 e-scooters across 24 locations.
In Perth, approximately 1,000 rental e-scooters were removed following a fatal crash, prompting a Western Australian inquiry that recommended tight regulations for future e-mobility schemes. Similarly, Bendigo saw Beam withdraw 250 scooters after low ridership, while Adelaide reported a drop in trips from 543,000 to 514,000 between 2024 and 2025.
The Rise of E-Bikes in Response
As e-scooter use faltered, rental e-bikes surged in popularity. Industry consultant Stephen Coulter attributed the e-scooter slowdown to a "moral panic" over safety, citing examples like Melbourne's abrupt withdrawal of schemes in 2024. He noted that state governments in Victoria and New South Wales are now approving share scheme operators, potentially paving the way for e-scooter returns in 2026.
In the interim, cities like Melbourne have shifted focus to e-bikes, with Lime expanding its offerings despite caps on fleet sizes. Hobart adopted Beam bikes in May, Canberra invited applications for e-bike and e-scooter operations, and Adelaide plans similar initiatives this year.
Sydney's E-Bike Explosion
Sydney has emerged as a hotspot for rental e-bikes, partly because e-scooter use remains illegal there. Lime more than doubled its fleet to at least 7,000 e-bikes in 2025, with industry sources suggesting figures could exceed 10,000. The City of Sydney reported that shared e-bike trips in the CBD nearly doubled to 3.7 million in 2025, attracting competitors like HelloRide and Ario.
Will Peters, Lime's Asia Pacific head, expressed optimism about growth, aiming to make Sydney a leading market globally. Government data indicates that 600,000 New South Wales residents now use shared e-bikes monthly, a significant increase from previous months.
Safety Comparisons and Future Outlook
Shared e-bikes are legal for road use with speed and power restrictions, contrasting with illegal modified e-bikes that have sparked government crackdowns. Preliminary police data from Queensland shows e-scooters were involved in 10 deaths and 440 crashes in 2025, compared to four deaths and 235 crashes for legal e-bikes.
Adam Rossetto, general manager of Ario, highlighted that e-bikes offer a "more traditional approach to mobility" with fewer safety issues, encouraging users to switch from e-scooters. As Australian cities navigate this transition, the e-bike revolution continues to gain momentum, reshaping urban transport landscapes.
