Key facts
- The City of Yarra has terminated its agreement with Lime, ending a nearly six-year ebike trial.
- Councillors cited issues with user behavior, including blocking footpaths and drunk riding, as reasons for the decision.
- Lime has approximately 30 days to cease operations in the Yarra council area.
- The council did not receive any revenue from Lime's operations under the previous agreement.
- Lime was the only applicant in a recent tender process for a permanent ebike sharing scheme.
Shared ebikes will be removed from some inner-city Melbourne streets after the City of Yarra council voted to end its agreement with Lime, Australia's largest electric bike operator. The decision terminates an almost six-year trial.
While some councillors acknowledged the environmental and affordability benefits of shared ebikes, others highlighted persistent issues with user behavior. Deputy Mayor Sharon Harrison stated that the operator had failed to manage operations effectively, leading to users blocking footpaths, abandoning ebikes, and riding while intoxicated. "We must prioritise the needs of pedestrians on our footpaths, we have legal obligations, and that’s the bottom line," Harrison said.
The termination means Lime has 30 days to cease operations in the Yarra council's jurisdiction, which includes areas like Fitzroy, Richmond, and Carlton North. These areas have seen high rates of shared ebike use, with Lime estimating around 614 trips daily since January 2025. However, the council has not earned any revenue from the scheme due to the terms of its agreement with Lime.
Mayor Stephen Jolly expressed frustration with the agreement's terms, stating, "They’re actually taking the mickey." The council had initiated a procurement process for a permanent scheme, but Lime was the sole applicant. Councillors voted against awarding Lime the contract, with Jolly emphasizing a willingness to reopen tenders if a company meets "bare minimum standards."
A Lime spokesperson expressed disappointment, calling the decision an "entirely unnecessary disruption." Councillor Sarah McKenzie, who voted against the motion, argued for a more balanced approach, comparing the situation to car usage and suggesting solutions like designated parking corrals. Proponents like Jeremy Lawrence from Streets Alive Yarra suggested that the council could generate revenue through car parking fees and that banning ebikes would push people towards driving.
The City of Melbourne is also expected to consider a permanent ebike scheme later this year, and surrounding councils may re-evaluate their own shared ebike relationships.