The City of Yarra in Melbourne has voted to end its memorandum of understanding with Lime, scrapping the nearly six-year-long trial of shared ebikes. The decision, made on Tuesday, means the electric bikes will disappear from streets in Fitzroy, Richmond, and Carlton North within 30 days after formal notice is given.
Citing safety and management failures
Deputy Mayor Sharon Harrison stated that the trial failed to meet “bare minimum standards,” highlighting issues with users blocking footpaths, dumping bikes, and riding while intoxicated. “There are two issues here: shared ebike users who refuse to follow the rules and show no consideration for others, and an operator which has demonstrated it cannot or will not manage its operations so that the community members are safe on Yarra streets,” she said.
High usage but no revenue for council
Despite Lime estimating roughly 614 trips per day since January 2025 and generating about $2.5 million in revenue from the area, the council earned nothing from the scheme due to the terms of the agreement. Mayor Stephen Jolly remarked, “They’re actually taking the mickey.” The council had initiated a procurement process in December for a permanent scheme, but Lime was the only applicant.
Council rejects Lime contract, opens door for future operators
Councillors voted not to award the contract to Lime. Mayor Jolly emphasized that the council is not opposed to ebikes overall: “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.”
Lime expresses disappointment
A Lime spokesperson said the company was disappointed by the decision, calling it “entirely unnecessary disruption to the ebike network across Melbourne.” The termination may impact users in neighboring councils of Melbourne, Darebin, and Stonnington due to the area's geography.
Mixed reactions from councillors and advocates
Councillor Sarah McKenzie, who opposed the motion, argued for a balanced approach, noting that most users are local residents commuting to work or public transport. “Those against it do relate a lot to user behaviour, but we don’t ban cars for user behaviour,” she said. Ebike proponent Jeremy Lawrence from Streets Alive Yarra suggested introducing bike parking corrals and charging for car parking to raise revenue and prevent dumping.
Future of shared ebikes in Melbourne
Surrounding councils are expected to review their shared ebike agreements in the coming months, with the City of Melbourne considering a permanent scheme later this year.
