Australia’s a bikesharing graveyard but new players are betting big on Sydney

Profitability is another issue.

Bird, which was among the industry’s pioneers, saw its share price fall 95 per cent last year, and has since moved to cut costs, including by pulling out of several markets, and secured additional investor cash.

“We don’t believe that selling $2 for $1 is a viable business strategy and do not plan to stay in markets where that’s a requirement,” its chief executive Shane Torchiana told an earnings call late last year.

The company would not say how many e-bikes it has in Sydney but said it had dozens of staff here, along with contractors who maintain its fleet.

“Bird is committed to our operations in Australia, and proud to provide riders with affordable, reliable, and sustainable transportation options while helping cities meet climate and mobility goals,” said Deevya Desai, Bird’s Australian senior manager for government partnerships.

Burt-Morris, the Lime boss, said the Australian industry was in its infancy and could expand manifold to resemble those in London or Paris but acknowledged challenges.

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“We are not a Transdev or a Yarra Trams, we don’t get hefty subsidies from the government to provide transportation, and in most cities, we actually pay to operate,” Burt-Morris said. “We focus a great deal on ensuring we can run a sustainable business far into the future, and it’s likely we will see some industry consolidation or exits in the next 1-2 years because other operators have not had that same focus.”

Industry figures estimate there are now somewhere around 2000 shared e-bikes on Sydney’s streets, with users charged for distance or time on the bike. Beam charges $1 to unlock a bike via its smartphone app and 45¢ a minute to ride.

But these bikes are a prelude to a bigger opportunity expected to arrive this year or next: shared electric scooters. These are banned in Sydney by the state government, but trials are being planned council by council with Transport NSW. The first trial is in the town of Lake Macquarie near Newcastle, which launched with Beam in December.

Beam’s Australian boss Tom Cooper said Beam focused on scooters where it could. “Across markets we see scooters get five trips for every one ebike trip,” Cooper told this masthead. “And so if there was the opportunity to put scooters in, then we invest in that.”

They were easier to ride in a suit, skirt or heels than a bike, Cooper said, but he added the company was committed to its roughly 750 bikes in the city.

Cooper’s counterpart at Neuron, Richard Hannah, said the company’s operations in Melbourne and Brisbane, where it operates scooters, were “extremely successful”.

“Melbourne’s e-scooter demand is the highest of any of our operations globally, the city’s program is breaking records when it comes to e-scooter utilisation with as many as 9000 trips over the course of a single day,” Hannah said.

A spokeswoman for Transport NSW said the government was ensuring that e-scooters were introduced to the state safely. “We will continue to work with councils to initiate new trials and monitor ongoing trials over the next 12 months,” the spokeswoman said.

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But unlike many other major cities, operators in Sydney do not require an official license to operate. Instead, a group of inner-city councils have guidelines on where and how share-bikes can operate and be parked to avoid issues such as overcrowding busy footpaths.

A spokesman for the City of Sydney said it does not have regulatory control over bike-sharing operators but urged operators to work with the city and adhere to council guidelines.

It is not participating in the government e-scooter trials, instead focusing on building bike lanes.

“The City of Sydney has made the decision that the busiest metropolitan area in Australia isn’t the best place for a trial of e-scooters,” the spokesman said. “This is primarily due to the high levels of pedestrian activity and a separated bike network that is still under construction.”

None of the operators would directly answer questions about their revenue or profitability, but Beam said it was in a strong position with $US30 million from a recent capital raising round earmarked for Australia and New Zealand.

A spokesman for HelloRide said that it had 400 bikes in Sydney and six operations staff, with the company pitching a 99c offer for new users. Regular service fees charged by HelloRide are higher.

“HelloRide is excited about future opportunities across Australia as we continue conversations with local councils,” the spokesman said.

A spokesman for the Inner West Council said it had asked sharebike operators to avoid flooding the area with bikes and avoid areas such as King Street in Newtown, where the footpaths are narrow and crowded.

“They have complied and the results have been good,” the spokesman said.

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