E-scooter operator to pull out of Yarra after council imposes drastic fee hike

“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.”

Fellow e-scooter operator Lime has not yet decided on its future in Yarra. If both companies exit the municipality, that would leave only City of Port Phillip with an e-scooter trial after the City of Melbourne banned e-scooters within its borders in August last year.

“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,” Neuron said.

The company spokesperson said it was disappointing that some believed the company was 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,” they said.

“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.”

Neuron will exit Yarra before its current contract ends on April 4.

More to come.

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