City of Yarra to end e-bike share arrangement following failed tender
A permanent shared e-bike scheme will not proceed after the only tender received in a competitive procurement process failed to meet Council's requirements.
An evaluation panel found the submission fell short across several operational and financial measures, and Council resolved not to enter into any new agreement and to end the existing arrangement. The current operator, Lime, will have 30 days from notice to cease operations in Yarra.
“For all the talk about transport and the environment, this is simply a bog-standard procurement issue,” said City of Yarra Mayor, Cr Stephen Jolly.
“Council outlined a set of conditions as part of the tender process to ensure that ratepayers were not left holding the bill, and what we received from Lime failed to meet this.”
Council's decision follows a period of increased scrutiny of shared micromobility in Yarra, including a resolution in October 2025 requesting a report on the benefits, issues and risks of e-bike share, and complaint data on delivery riders using footpaths. In December 2025, Council resolved to proceed with procurement for a permanent scheme, subject to the requirement that any service cover Council's management costs and be revenue positive.
Yarra City Council has recorded hundreds of complaints about e-bike share since the scheme's 2020 launch. The most common concerns related to improper footpath parking (a Council enforcement matter) and footpath riding, speeding, helmet non-compliance and tandem riding (all police enforcement matters).
Council said the decision reflects the outcome of a rigorous, independently overseen procurement process rather than a judgement on demand for e-bike share itself. Any future shared e-bike scheme in Yarra would need to go through a fresh procurement process and satisfy Council's requirements on operations, data security and finances.
Council will now work with Lime on an orderly wind-down of e-bike operations in Yarra within the 30-day notice period. Privately owned e-bikes are unaffected by this decision.
Frequently asked questions
Council ran a formal tender process for a permanent e-bike share scheme. Only one tender was received, and the evaluation panel found it did not satisfactorily meet Council's requirements across operational and financial criteria, even after the tenderer was given the opportunity to provide additional information.
The MoU was established in 2020 as a 12-month trial and was never intended to be a long-term operating model. It has continued unchanged for over five years without a fee to Council and without the contractual protections a formal agreement provides. With the procurement process complete, Council considers it appropriate to end the interim arrangement rather than continue it indefinitely.
Council will give notice to Lime that it has 30 days to cease operations in Yarra as per the requirements of the MOU.
Advice indicated one specific data security concern could potentially be resolved. However, the evaluation panel identified multiple other significant, unresolved concerns in the submission across operational and financial areas. Council may consider a future procurement process, but any new scheme would need to go through the full tender process again.
Since 2020, Council has responded to 100 complaints, with the most common issues being bikes improperly parked on footpaths (a Council enforcement responsibility), and footpath riding, speeding, helmet non-compliance and tandem riding (all matters for Victoria Police).
Council has an obligation under the Road Management Act 2004 (Vic) and the Disability Discrimination Act 1992 (Cth) to keep footpaths free from unnecessary obstruction, which informed Council's approach to the scheme's management.
Yes. Since November 2023, the Transport (Compliance and Miscellaneous) Act 1983 has required operators of shared micromobility schemes to hold an operator agreement with the relevant council. e-bikes must also comply with a 25 km/h maximum power-assisted speed limit, and operators must carry third-party, personal injury and public liability insurance.
Council will manage an orderly transition with Lime within the 30-day notice period. Any future e-bike share scheme in Yarra would require a new procurement process.
Privately owned or privately leased e-bikes are unaffected. Once the 30-day notice period concludes, however, Yarra will no longer have a public shared e-bike scheme operating in the municipality unless and until Council determines a new scheme through a future procurement process.