Rental Ebikes Surge as E-Scooter Usage Declines in Australia

The rental ebike market in Australia is experiencing significant growth, particularly in Sydney, as the popularity of e-scooter hire operations declines. This shift has been attributed to safety concerns and what some have termed a “moral panic” surrounding e-scooter usage. In 2025, the number of rental ebikes in Sydney nearly doubled, with US operator Lime deploying thousands more to meet rising demand. Conversely, e-scooter operations have faced setbacks, with major operators like Neuron and Beam reducing their fleets by nearly 10% to approximately 12,500 e-scooters across 24 locations.

The Guardian

The decline in e-scooter usage has been marked by several incidents, including a fatal crash in Perth that prompted the removal of 1,000 rental e-scooters. A Western Australian inquiry suggested that e-mobility could return under stricter regulations. In Bendigo, Beam's fleet was withdrawn after failing to meet ridership expectations, while Adelaide reported a decrease in e-scooter trips from 543,000 to 514,000 between 2024 and 2025. Local governments, reacting to safety concerns, have imposed restrictions, with Melbourne's council increasing fees and forcing operators out of the city.

The Guardian

As e-scooter usage stalls, residents are increasingly turning to rental ebikes. Lime's Asia Pacific head, Will Peters, noted that the company is optimistic about expanding its ebike offerings, particularly in Sydney, where e-scooter use remains illegal. The company has seen a significant uptake in ebike usage, with 600,000 residents in New South Wales using shared ebikes monthly—an increase of 100,000 since October. The City of Sydney reported that shared ebike trips in the CBD nearly doubled in 2025, reaching 3.7 million.

The Guardian

The relative safety of ebikes compared to e-scooters has played a crucial role in this transition. Adam Rossetto, general manager of Ario, emphasized that ebikes offer a more traditional and safer approach to mobility. The legal framework surrounding ebikes, which limits their speed to 25 km/h and power to 250 watts, contrasts sharply with the issues faced by e-scooters, which have been linked to numerous injuries and fatalities. Preliminary data from Queensland indicated that e-scooters were involved in 10 deaths and 440 crashes in 2025, while legal ebikes were linked to four deaths and 235 crashes.

The Guardian

Industry experts, including Stephen Coulter, have pointed to the "moral panic" over e-scooter safety as a catalyst for the decline in their usage. He suggested that state governments could facilitate a return of e-scooters by approving shared scheme operators. Meanwhile, Lime is focused on enhancing its ebike offerings and expanding its presence in Australian cities.

The Guardian

• “Bikes are picking up in the absence of scooters and the operators are becoming better at aligning them with customer need,” — Stephen Coulter, Industry Consultant

The Guardian

• “They provide a more traditional approach to mobility … that delivers less stupidity, I think, from a section of users.” — Adam Rossetto, General Manager of Ario

The Guardian

• “I think we can be bigger than London, we can be bigger than Paris.” — Will Peters, Lime’s Asia Pacific Head

The Guardian

This evolving landscape of urban mobility in Australia highlights the complexities of public perception, safety, and regulatory responses as cities adapt to changing transportation needs.

The Guardian