E-scooter companies pull out of Yarra after rate increase

E-scooters in Melbourne’s inner east will be no more, after a 400 per cent “unsustainable” council fee increase caused the companies to pull their vehicles.

Melbourne e-scooter operators Neuron and Lime have pulled out of the City of Yarra. Picture: Supplied

Australia’s two e-scooter operators will pull their scooters out of the Yarra City Council due to a 400 per cent increase in fees.

Neuron Mobility announced they would stop operating e-scooters in the Yarra boundaries before their contract expired on April 4.

It comes as a result of a whopping fee increase by the council, which voted on March 11 to increase e-scooters fees from $1 per day to $5 per day.

Neuron said the decision came without proper consultation.

“We’ve always been committed to partnering with councils to deliver a safe and sustainable transport option, and we’ve thoroughly enjoyed our time in Yarra. But a 400 per cent fee hike is totally unsustainable,” a Neuron spokesperson said.

E-scooters will no longer be available in the City of Yarra.

“Unfortunately, the figures just don’t add up. Each e-scooter in Yarra generates around $9.50 per day, but with the new $5 per e-scooter per day council fee, the remainder isn’t enough to cover staff wages, warehousing, recharging, maintenance, insurance, safety initiatives, rider education, and ongoing technology upgrades.

“It wouldn’t be fair to pass such a steep cost onto riders. Our e-scooter programs are designed to provide a convenient, affordable alternative to cars, and a massive hike like this would significantly hurt rider adoption. We remain committed to keeping our service accessible wherever we operate.

Melbourne e-scooter operator Neuron will only supply the City of Port Phillip after they pulled out of the City of Yarra due to rate increases. Picture: Supplied

“It’s disappointing that some people still believe that we have been making a profit in Yarra — this is simply not the case. Since the City of Melbourne paused its e-scooter program for a reset, trip numbers have plummeted by around 85 per cent and so has the revenue we generate from Greater Melbourne.

“We’re sorry that our loyal riders will be impacted, particularly those who rely on e-scooters as their primary mode of transport. Unfortunately, this situation is beyond our control. We hope to return in the future, potentially as part of a Greater Melbourne contract, but for now, the fees make it impossible to continue.”

The City of Yarra told the Herald Sun fellow e-scooter operator Lime had also pulled out.

However a spokesperson from Lime said they had decided to hold off an extension of their contract but would “remain in the City of Yarra” while a formal contract proposal process began.

“Lime will continue to collaborate closely with the council and stakeholders and provide affordable and accessible transport through e-bikes to the people of Yarra,” the spokesperson said.

A Yarra spokesperson said they went “above and beyond” to try and make the scheme work, but they were clear they would not continue to subsidise e-scooters.

“Many in the community will be disappointed at this decision,” a spokesperson said.

City of Port Phillip is now the only Melbourne council with e-scooters.

It comes as e-scooters were banned in the City of Melbourne under mayor Nick Reece.