A convenient mode of travel, a public nuisance, or a job - it's Lime

Tuesday, 30 October 2018

E-scooter company Lime launched in New Zealand with hundreds of scooters scattered across Auckland and Christchurch. (Video first published in October 2018)

E-scooter company Lime is the talk of the town, but who is behind the young Californian startup that's hit the ground running in New Zealand?

Lime was set up last year by four entrepreneurs including chief executive Toby Sun, and chairman Brad Bao in Silicon Valley. But the company is registered under Neutron Holdings in New Zealand.

In July, Lime raised US$335 million (NZ$513m) from big names including Uber and Google.

The dockless shared transportation market is quickly evolving and just weeks after Lime's launch two other companies, Wave Scooters and Onzo – which runs a bicycle sharing scheme – have plans to launch scooters in Auckland.

* E-scooter injury claims and near misses spark safety fears

* China exports its bike-sharing revolution to the US, the world**

Where did the idea come from?

This travel model originated in China.

China's billion-dollar bike-sharing revolution has already transformed the look and feel of cities around the country, with more than 100 million apps downloaded and billions of rides taken on many millions of bikes.

It has been hailed as cheap and convenient, but the ensuing parking, traffic and congestion issues prompted city authorities to impound thousands of the bikes and, in some cases, dump them in enormous, colourful piles, dubbed bicycle graveyards.

Onzo bikes started appearing in Auckland last year, and the Facebook page 'Onzos in weird places' shows the bikes have been discarded in numerous places, including trees.

Lime is the latest iteration of this model to hit New Zealand with its e-scooters.

The dockless model has also become a hot favourite among investors, raking in millions from venture capitalists globally.

NZ Lime's Hank Rowe said New Zealand had been a priority market for some time.

According to financing and angel investment database CB Insights, investors had poured in at least US$2.8 billion into bike sharing startups this year.

How did Lime make it to New Zealand?

New Zealand beat Australia in getting the e-scooters on our streets as the market across the ditch proved harder to crack.

In July, the state governments in Australia cracked down on regulations for dockless bikes because they created a nuisance.

Earlier this month NZ Lime's Hank Rowe said New Zealand had been a priority market for some time.

'We have carefully considered how to maximise the benefit of our e-scooters in New Zealand,' Rowe said.

'The advantage of our e-scooters is they work together with existing public transit by increasing the accessibility of public transport so people can rely less on personal cars.'

About 400 scooters, made and operated by California-based Lime, were spread throughout Christchurch and 500 in Auckland.

Those numbers will rise to 700 and 1000 respectively in the near future.

They can travel at speeds of up to 27kmh and have a maximum range of 48 kilometres.

Users find and unlock the scooters using an app on their phone.

Worldwide, Lime claims 6 million rides have been taken to date.

The business of juicing

The Lime scooters are battery powered and take about four hours to fully charge.

People can sign up to become 'juicers' to charge the devices. They are given eight chargers to begin with and collect the scooters in their own vehicles.

Payment can range up to $15 for each scooter, depending on the charge level of the scooter and the difficulty of retrieving it.

More than 100 people had signed up for the gig so far, with more expected as scooter numbers increased.

Uber has backed Lime, by investing in it and planning a partnership with it.

If the scooter can not be picked up for any reason, the bounty on that scooter goes up the next day.

Riders are charged $1 to hire the scooter and 30 cents a minute, which equals about $18 an hour. Users can pause their ride, essentially reserving it from other users, but the pause rate is the same as the active rate.

Safety concerns

Since the launch of the scooters, a number of accidents have been reported around the city.

There have been 67 ACC claims from injuries that were e-scooter-related since Lime was introduced – 44 in Auckland, 22 in Christchurch.

Lime scooters can reach speeds of up to 27kmh and people do not need to wear a helmet.

Mayor Phil Goff has called for an urgent council report to look at the safety concerns surrounding e-scooters in the region after a councillor was almost hit.

Last week in a statement, New Zealand Lime launcher Hank Rowe said it was committed to working with local authorities to 'tailor Lime's service to the needs of both cities and will be conducting roundtable discussions with the New Zealand Transport Agency, Auckland Transport and Christchurch City Council to prioritise safety'.

It would also be hosting a rider safety summit in the next week to teach users about 'responsible scooter usage', Rowe said.

In Lime's operational plan for Christchurch, it featured contacts of cities that had previously supported the company like Seattle and Paris.

However, when the heads of transportation in each city, both indicated they had changed their view.

Seattle has banned dockless scooter-sharing companies due to safety concerns.

The mayor of Paris' transportation adviser Caroline Daude told Stuff that while the Lime scooters continued to operate in the city, authorities would ensure they would not disturb pedestrians or invade public space.

'The law in France is not yet clarified, so the e-scooters are not really allowed, nor forbidden, neither on the pavement, nor on the streets, and we have problems with conflicts between pedestrians and e-scooters,' Daude said.

Interesting T&Cs

The e-scooters also have some interesting terms and conditions to be wary of.

- If you use the e-scooter you have agreed that riding it involves risks which may result in injury or death.

More than 100 people had signed up as 'juicers', with more expected as scooter numbers increased.

- 'We make no representation that our services is appropriate for use beyond the USA'.

- You have to be 18 years old. But anyone can download the app.

- There is a weight restriction of 136 kilograms.

- If scooter is vandalised, you're liable for US$1,500 (NZ$2,299). Any disputes need must be sent to a Californian address.

- You're not allowed to carry a backpack, briefcase or bag while riding a scooter.

- Lime can take pictures, videos and audio of you using their service at anytime and use it for their promotional content.

Share your Lime experience newstips@stuff.co.nz.