Melbourne council votes to scrap Lime ebikes after failing to meet ‘bare minimum standards’

Shared ebikes will disappear from some inner-city Melbourne streets after a council scrapped its agreement with Australia’s largest electric bike operator.

The City of Yarra on Tuesday voted to end its memorandum of understanding with Lime, terminating its almost six-year-long trial.

Though some councillors noted shared ebikes were an affordable and environmentally friendly transport option, others said the operator had not done enough to prevent users from blocking footpaths, dumping ebikes or riding while drunk.

“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,” the deputy mayor, Sharon Harrison, said.

“We must prioritise the needs of pedestrians on our footpaths, we have legal obligations, and that’s the bottom line.”

The termination of the agreement means Lime will have 30 days to end its operations in the area once notice has been given by the council.

The City of Yarra’s jurisdiction, which encompasses Fitzroy, Richmond and Carlton North, boasts some of the highest rates of shared ebike use in Australia, with Lime estimating roughly 614 trips were made every day since January 2025.

Lime has made about $2.5m from the area, according to council figures.

But the council has not earned anything from the ebike scheme due to the terms of its agreement with the company.

“They’re actually taking the mickey,” the mayor, Stephen Jolly, said.

The shared memorandum of understanding was intended to be a rolling, one-year trial, and a permanent ebike sharing scheme would have allowed the council to receive a payment from an operator.

The council had begun a procurement process in December, but Lime was the only company to apply through the tender process.

Councillors on Tuesday also voted not to award the contract to Lime.

“We’re not saying no to ebikes – people can have their own private ebikes,” Jolly said.

“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.”

A Lime spokesperson said the company was disappointed by the decision.

“This entirely unnecessary disruption to the ebike network across Melbourne should be avoided,” their statement said.

The area’s geography means the change could impact users who live in the neighbouring councils of Melbourne, Darebin and Stonnington.

Councillor Sarah McKenzie, who opposed the motion, called for a more balanced approach to shared ebikes.

Most users were not visitors but local residents cycling to work, public transport or other small businesses nearby, she said.

“Those against it do relate a lot to user behaviour, but we don’t ban cars for user behaviour,” she said. “I know the scheme isn’t perfect … but I don’t think that is a good enough reason to cease this now.”

Ebike proponents, including Streets Alive Yarra spokesperson Jeremy Lawrence, suggested the council introduce bike parking corrals to prevent ebike dumping and raise revenues by charging for car parking.

“By choosing to forgo the possible revenue from non-resident commuters, council is nudging people toward driving, and therefore propping up multinational organisations such as Saudi Aramco, TotalEnergies, or Exxon Mobil.

“We believe that streets are for everyone, and we should be supporting people to use the mode that best works for them.”

Surrounding councils are expected to re-evaluate their relationships with shared ebikes in the coming months, with the City of Melbourne to consider a permanent scheme later in the year.