News summary produced by Claude AI
The City of Yarra council voted on Tuesday to end its memorandum of understanding with Lime, Australia’s largest electric bike operator, effective after a 30-day notice period. The decision terminates an almost six-year trial of shared ebikes in the municipality, which encompasses Fitzroy, Richmond, and Carlton North.
Council members cited concerns about user behavior and operational management as grounds for the termination. Deputy Mayor Sharon Harrison emphasized that the council must prioritize pedestrian safety on footpaths and noted the operator had demonstrated an inability or unwillingness to prevent users from blocking walkways, abandoning bikes improperly, or riding while intoxicated. Mayor Stephen Jolly stated the company had failed to meet basic standards, describing the arrangement as commercially unfavorable to the underfunded local government.
The ebike scheme had generated significant activity in the area, with Lime estimating approximately 614 daily trips since January 2025. However, the council received no revenue from the arrangement under the trial’s terms, while Lime accumulated roughly $2.5 million in earnings. The council initiated a procurement process in December to establish a permanent scheme with revenue-sharing provisions, but Lime was the only applicant through the tender process. Councillors voted not to award the contract to Lime.
Opposition to the termination came from councillors who highlighted the environmental and affordability benefits of shared ebikes, noting that most users were local residents commuting to work or public transport rather than tourists. Advocates suggested alternative approaches, including dedicated bike parking facilities to reduce dumping and paid car parking programs to generate municipal revenue. Lime expressed disappointment with the decision, characterizing the disruption as unnecessary.
The termination may affect users in neighboring municipalities, and surrounding councils are expected to evaluate their own shared ebike programs in the coming months.