Rental ebikes are experiencing a surge in popularity across Australia as e-scooter hire operations decline, a trend some attribute to a “moral panic” regarding safety.
Ebike Boom Led by Sydney
The growth in ebikes is being spearheaded by Sydney, where the number of vehicles on streets nearly doubled in 2025 following increased deployment by US operator Lime. Lime has experienced the greatest uptake in Sydney, where e-scooter use is illegal, including for shared schemes.
E-Scooter Operations Slow
E-scooter rentals initially gained traction faster than ebikes, with all Australian capital cities except Sydney permitting them in early 2025. However, operations have been curtailed throughout the year due to safety concerns and decreasing popularity. Major operators Neuron and its subsidiary Beam reduced their combined fleets by nearly a tenth, to approximately 12,500 e-scooters across 24 locations.
Regional Variations and Safety Concerns
Perth removed around 1,000 rental e-scooters after a fatal crash involving an e-scooter. A subsequent inquiry in Western Australia suggested e-mobility could return with stricter regulations. In Bendigo, Beam’s 250 scooters were removed after fewer than 55,000 trips, failing to meet expectations. Adelaide also saw a decrease in ridership, falling from 543,000 trips in 2024 to 514,000 in 2025.
Melbourne’s Shift and Industry Perspective
Neuron and Lime pulled scooters from Melbourne’s Yarra area following fee increases and had previously been forced out of the central business district in 2024. Industry consultant Stephen Coulter of Zipidi attributes the slowdown in e-scooter use to a “moral panic” surrounding safety. He noted that residents in Melbourne have transitioned to using Lime’s ebikes.
Looking Ahead
State governments could facilitate the return of e-scooters in 2026, with Victoria and New South Wales already approving share scheme operators, and Western Australia and Queensland expected to respond to state inquiries. Cities like Hobart and Canberra are also embracing bikes, with Hobart adopting Beam bikes in May and Canberra inviting applications for both ebike and e-scooter operations. Adelaide will issue a similar invitation this year.
Frequently Asked Questions
What is happening with e-scooters in Australia?
E-scooter hire operations are declining across Australia due to safety concerns and unpopularity, leading to reduced fleets and even complete removal of services in some cities.
Which city is leading the ebike boom?
Sydney is leading the ebike boom, with the number of vehicles on its streets nearly doubling in 2025 as Lime deployed more ebikes.
What is causing the decline in e-scooter use?
A “moral panic” about safety and injuries, as well as operational challenges and regulatory changes, are contributing to the decline in e-scooter use.
As cities re-evaluate their micro-mobility options, will ebikes continue to gain prominence as a safer and more accepted alternative?
