Mass job losses as e-scooter companies operating in Adelaide struggle
The future of e-scooter companies operating across Adelaide is in doubt amid the coronavirus crisis, with mass job losses across the industry. The CEO of Adelaide-based RIDE has already left.
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Several e-scooter companies in Australia won’t survive the COVID-19 crisis that has already seen mass sackings across the new industry, insiders claim.
The future of RIDE scooters, which holds licences to operate in Adelaide, North Adelaide and along the metropolitan coast, is in question after it sacked two prominent members of its team.
The news comes as the Adelaide City Council is still conducting an independent review into its decision to award two-year contracts to RIDE and Neuron.
The Messenger has confirmed RIDE CEO, Tom Cooper, the voice and face of the company in Adelaide, and project and operations manager Jayde Free both left this month.
Other members of RIDE’s Adelaide operational team are also understood to have been dismissed.
“I’ve moved on and that’s all I’d like to say at this time,” Mr Cooper said.
“Quinton Rutgers (based in Melbourne) has taken over the running of the company now.”
RIDE made a big play that it’s an Australian-owned-and-operated company based in Adelaide and its local links are believed to have been a factor in its successful bid for a licence from Adelaide City Council.
Rival companies including Beam and Lime which missed out on Adelaide City Council contracts, dispute the claim it’s an Australian company and say RIDE is owned and operated from the US.
Attempts to reach Mr Rutgers first saw The Messenger contact Aaron Weinberg in the US who is registered as owning all 10,000 shares in the company Ride Transportation Solution Pty Ltd. He said he has sold all of his shares.
Mr Rutgers, one of only two RIDE directors, is yet to contact The Advertiser to discuss the company’s future in Adelaide.
Lime’s head of public relations, Mitchell Price, said it had made a submission to Kain Lawyers who are conducting the City Council’s independent review into its tender process.
Mr Price said Lime was keen to return to Adelaide streets.
“There will only be a small number of operators left once this crisis is over and though we’ve been through some tough times we are planning to be back stronger than ever,” he said.
“We’ve been ready for over 12 months to provide a reliable sustainable transport solution into Adelaide that will be needed more than ever now.”
Beam vice-president of corporate affairs Christopher Hilton, based in Singapore, said, despite laying off some of its Australian staff last month, including head of public affairs Brad Kitschke, his company was “keen to return to Adelaide” if “a vacancy became available”,
“We’ve always seen Adelaide as a strong market and we were very disappointed to miss out in the last tender,” he said.
“We would welcome any opportunity to return to Adelaide and it would be a high priority for us.”
Mr Cooper was the face of RIDE e-scooters during its successful application to secure operating licences in Adelaide and has confirmed he left his position as RIDE’s chief executive, with immediate effect, earlier this month.
“It’s been one hell of a ride. It’s been incredible. I’m grateful for the opportunities and I’m looking forward to seeing where I pop up next.”
Mr Cooper would not comment on whether he received a severance payment.
Mr Cooper said the “scooters wars” between rival e-scooter companies was “still going strong”.
“I’m fascinated that news I’ve gone has become public knowledge and that could have only come from one place,” he said.
“Some of the other companies talk a big game but everyone is suffering the same issues under COVID-19.
“I’ve heard other companies have let staff go but I still think there’s a strong place for micro-mobility in Adelaide going forward, with social distancing and things like that.”
Born and raised in Adelaide, where he was educated at St Peter’s College, Mr Cooper returned to the state to run RIDE.
Previously, he started digital allied health reservation business Nextin Bookings and was part of developing Kubofit – a fitness app business sold to the company that operates Goodlife gyms.
RIDE and Singapore’s Neuron were the two companies to secure two-year licences from Adelaide City Council in December to operate in the city and North Adelaide.
The pair also secured the contract to provide e-scooters along Adelaide’s metropolitan coastline from Seacliff to Outer Harbour.
RIDE made the decision in March to pull its scooters from Adelaide streets as a “temporary” public safety measure.
The Messenger can confirm RIDE project and operations manager Jayde Free has also left the company.
“Today I’m saying goodbye to my little black and yellow scoots,” she posted on social media.
“From packing a truck full of 5000 scooters, driving across the border, to late nights perfecting proposals, it is an adventure I will never forget.”
Adelaide City Council has been contacted for comment.