Councils warned not to undermine the viability of e-scooter rental schemes

Councils across the UK have been urged not to seek large financial contributions from shared transport providers, to avoid undermining the viability of e-scooter rental schemes.

With rising running costs and no government subsidy, national shared transport charity CoMoUK (Collaborative Mobility UK) is asking local authorities to consider profit-sharing models with providers, rather than taking cuts of overall revenues, when considering extensions of e-scooter trials.

The charity’s chief executive Richard Dilks said, “We urge authorities to exercise caution in seeking financial contributions from operators, both as a matter of good public procurement practice and to avoid threatening the viability of schemes and operators.

“Revenue-sharing arrangements are an example of approaches which are likely to be overly onerous financially. Instead, we would favour examining profit-sharing options, in the context of the tough financial and economic conditions.”

There are currently more than 30 trial e-scooter rental schemes in operation across the UK, which the Government is using to collect safety data to inform any updated legislation.

Many of these trials have been extended until May 2024, as the Government is working on plans to introduce a new vehicle category for zero-emission, low-speed vehicles, paving the way for the legalisation of privately-owned e-scooters on public roads.

CoMoUK said e-scooter trials have been a success because of the sustained and high numbers of riders alongside low incident rates. It considers that legalising e-scooters will ensure they are subject to high safety standards while also helping to lower emissions from transport, cut congestion and repurpose streets away from cars.

Dijks said councils should take into account “the socio-economic benefits that this subsidy-free mode brings in terms of social value, decarbonisation, sustainability, productivity and growth.”