Scooter fee a snip for '$10m' Lime firm

Monday, 11 February 2019

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

Lime scooters could bring in more than $10 million in Christchurch over the next year – but the city council could reap less than one per cent of that in fees.

The authority is set to issue a 12-month permit for the electronic scooters after overwhelmingly positive public feedback on a pilot scheme.

Lime will also be able to expand its fleet from 700 scooters to 1000, providing councillors approve the proposals.

Stuff has calculated the firm could rake in more than $10m, before costs, from its Christchurch business alone over the next 12 months, while paying just $86,250 to the city council for the privilege.

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More than 100,000 people have used Lime scooters in Christchurch since October.

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Lime said it would work 'collaboratively' with the authority over permits.

The city council could allow 1000 Lime scooters on to Christchurch's streets - which could make the firm $10m over the next year.

Over a quarter of Christchurch's population have used Lime scooters since they were introduced on a trial basis in October.

At least 400,000 trips have been made in that time, most lasting less than 10 minutes as people ride around the central city and in Hagley Park, council data shows.

Conservative estimates based on journeys of five minutes suggest Lime has made $1m in revenue since the trial began, while 10-minute trips would have earned the company $1.6m.

The council is considering charging Lime an annual permit of roughly $86.25 for each scooter, a figure based on similar fees businesses like bars and cafes have to pay for using public spaces.

But that $86,250 income for 1000 scooters is a fraction of what the firm could earn.

The trial revealed that each scooter is used on average seven times a day.

With five minute-trips, this could see Lime take in almost $6.4m a year, while 10-minute journeys would earn the company $10.2m – more than 100 times the proposed fee to the council.

A spokeswoman for Lime said: 'It's great that Christchurch recognises how Lime scooters are addressing the congestion, sustainability, and safety goals.

Sign of the Limes: e-scooters have become incredibly popular in New Zealand, so much that Emelie Oberg and Jennifer McPhee spent Christmas morning racing them in Christchurch.

'We will continue to work collaboratively with Christchurch City Council to address the permit extension and achieve the best outcome for all.'

Councillors will discuss a report recommending an extension of the scheme on Wednesday, before the council will make a decision at a later date.

Christchurch people have taken the scooters to their hearts since they were brought in last year, with 93 per cent of users calling for e-scooters to be allowed to stay.

A council survey of 8000 people also found 75 per cent said the scooters have had a positive effect on the city.

Even Mayor Lianne Dalziel is becoming a fan, revealing to Stuff that she is ready to take to the streets after having a practice in a car park at Hagley Park.

She said: 'The reaction to Lime scooters has been incredibly positive, and they've certainly created that sense of central city activation and excitement.

'I don't think I've actually seen someone on a Lime scooter who wasn't smiling, so it's just created a sense of fun as well.'