The City of Yarra council in Melbourne has voted to terminate its trial agreement with Lime, Australia's largest electric bike operator, citing the company's failure to meet 'bare minimum standards' in managing user behaviour. The decision, made on Tuesday, ends an almost six-year-long memorandum of understanding and gives Lime 30 days to remove its ebikes from the streets of Fitzroy, Richmond and Carlton North.
Council Cites Safety and Obstruction Concerns
Deputy mayor Sharon Harrison highlighted two key issues: shared ebike users who refuse to follow rules and show no consideration for others, and an operator that has demonstrated it cannot or will not manage its operations to ensure community safety on Yarra streets. 'We must prioritise the needs of pedestrians on our footpaths, we have legal obligations, and that's the bottom line,' she said.
Despite some councillors acknowledging that shared ebikes are an affordable and environmentally friendly transport option, the majority agreed that Lime had not done enough to prevent users from blocking footpaths, dumping ebikes, or riding while drunk.
Financial Implications and Usage Statistics
The City of Yarra's jurisdiction boasts some of the highest rates of shared ebike use in Australia. Lime estimates that approximately 614 trips were made daily since January 2025, generating about $2.5 million in revenue for the company from the area, according to council figures. However, the council did not earn any income from the scheme due to the terms of the agreement. Mayor Stephen Jolly remarked, 'They're actually taking the mickey.'
The memorandum of understanding was intended as a rolling, one-year trial. A permanent scheme would have allowed the council to receive payment from an operator. The council began a procurement process in December, but Lime was the sole applicant through the tender process.
Future of Shared Ebikes in Yarra
Councillors also voted not to award a permanent contract to Lime. Mayor Jolly clarified, 'We're not saying no to ebikes – people can have their own private ebikes. We will reopen the tender if we have a company that comes back and meets the bare minimum standards, which is not a corporate monolith expecting an underfunded council to bankroll them.'
A Lime spokesperson expressed disappointment, stating, 'This entirely unnecessary disruption to the ebike network across Melbourne should be avoided.' The area's geography means the change could impact users from neighbouring councils of Melbourne, Darebin and Stonnington.
Opposition and Alternative Proposals
Councillor Sarah McKenzie, who opposed the motion, called for a more balanced approach. She noted that most users are not visitors but local residents cycling to work, public transport, or small businesses. 'Those against it do relate a lot to user behaviour, but we don't ban cars for user behaviour. I know the scheme isn't perfect … but I don't think that is a good enough reason to cease this now,' she said.
Ebike proponents, including Streets Alive Yarra spokesperson Jeremy Lawrence, suggested the council introduce bike parking corrals to prevent dumping and raise revenues by charging for car parking. 'By choosing to forgo the possible revenue from non-resident commuters, council is nudging people toward driving, and therefore propping up multinational organisations such as Saudi Aramco, TotalEnergies, or Exxon Mobil. We believe that streets are for everyone, and we should be supporting people to use the mode that best works for them,' Lawrence said.
Regional Impact and Future Reviews
Surrounding councils are expected to re-evaluate their relationships with shared ebikes in the coming months. The City of Melbourne is set to consider a permanent scheme later in the year.
