Lime has quietly implemented a significant price increase for its electric bike rentals across London, making journeys more expensive for regular users without prior warning.
The Stealth Price Increase
City AM has learned that the micromobility giant has raised its per-minute rental rate from 29p to 31p, representing a seven per cent jump. The company also sharply increased the cost of its 30-minute ride bundle from £3.99 to £4.49, a rise of just over 12 per cent.
For frequent riders, these changes accumulate quickly. A standard 20-minute pay-as-you-go journey that previously cost £5.80 now costs £6.20, adding substantial expense over multiple trips.
Competitive Landscape Shifts
This quiet price adjustment positions Lime at a noticeably higher price point than its main competitors. Rival operator Forest charges a £1 unlocking fee followed by 29p per minute, while Bolt offers a 30-minute pass for £2.99 or standard rides at 29p per minute.
It appears that neither of Lime's competitors have introduced comparable price increases in recent weeks, potentially giving them a competitive advantage in London's crowded e-bike market.
A Booming Business Faces Challenges
The price hikes arrive shortly after Lime published its 2024 financial results showing remarkable growth. The company's UK revenue surged 75 per cent in a single year, reaching £111.3 million. Despite this impressive revenue jump, pre-tax profit slightly declined from £2.1 million to £1.7 million as the firm expanded its fleet and operations.
Lime's expansion in the capital has been extraordinary, recording an 85 per cent increase in journeys last year with 16 million rides taken during commuting hours alone. The company's dominance now exceeds even Transport for London's Santander cycles, with Lime estimated to operate at least 20,000 bikes on London's streets compared to Santander's 12,000.
However, this rapid growth hasn't been without complications. Trauma surgeons have reported increasing injuries linked to what's being called 'Lime bike leg', caused by accidents involving the company's heavier e-bike models.
London boroughs have also intensified pressure on e-bike operators. Hackney has capped e-bike fares at £1.75 for trips within the borough, while Hounslow terminated its Lime trial entirely. Westminster has begun issuing £100 fines directly to Lime and Forest for bikes left blocking pavements.
This penalty is expected to be issued approximately 50 times daily, amounting to around £1 million in annual fines as councils respond to complaints about dockless bikes cluttering streets and creating hazards for pedestrians.
Meanwhile, competition continues to intensify. Forest has introduced a dynamic pricing system offering discounted rides for bikes left idle or in over-supplied areas. Hackney's controversial five-year deal with Lime and Voi, which excludes Forest, has also generated mixed reactions from locals concerned about safety and increasing e-bike traffic, though some residents welcome the cheaper £1.75 fares included in the agreement.
