News summary produced by Claude AI
The City of Yarra council terminated its memorandum of understanding with Lime, Australia’s largest electric bike operator, following a vote held on Tuesday. The decision concludes an almost six-year trial period of shared ebike services within the council’s jurisdiction, which includes Fitzroy, Richmond, and Carlton North.
Council members cited multiple concerns regarding the operation of the ebike scheme. While acknowledging that shared ebikes provide an affordable and environmentally sustainable transportation option, councillors highlighted problems including users blocking footpaths, abandoning ebikes improperly, and riding while intoxicated. Deputy mayor Sharon Harrison emphasized the council’s responsibility to ensure pedestrian safety and stated that Lime had demonstrated an inability or unwillingness to manage its operations adequately. Following the termination notice, Lime will have 30 days to cease operations in the area.
The City of Yarra’s jurisdiction has recorded significant ebike usage, with approximately 614 trips made daily since January 2025. However, the council received no revenue from the scheme under the existing trial agreement terms. Council records indicate Lime earned approximately $2.5 million from the area during the trial period. The council had initiated a procurement process in December to establish a permanent paid scheme, but Lime submitted the only application through the tender process. Councillors voted against awarding the contract to the company.
Mayor Stephen Jolly stated the council remains open to ebike services if operators meet baseline standards, indicating the tender process may reopen for qualified providers. A Lime spokesperson expressed disappointment with the council’s decision, characterizing the disruption to Melbourne’s ebike network as unnecessary. The change may affect users in neighbouring councils of Melbourne, Darebin, and Stonnington due to geographical overlap.
Some councillors and community advocates opposed the termination, arguing that most users were local residents commuting to work or transit connections rather than causing problems. Proponents suggested alternative solutions such as designated bike parking corrals and car parking revenue generation. The City of Melbourne is expected to evaluate its own relationship with shared ebike services later in the year, with other surrounding councils anticipated to reassess their positions in coming months.