E-Scooter Trials: Five Challenges for First Movers

The government has recently announced that it will fast-track trials of rental e-scooters with the aim of encouraging more people off public transport and onto greener alternatives.

The earlier-than-expected trials, which could now start as soon as June 2020, were announced on 9 May 2020 as part of the government’s plans to boost greener, active transport.

The trials will also now be offered to all local areas across the country, and not just in 4 dedicated ‘future transport zones’.

The trials are expected to see the launch of a number of electric motorised scooter sharing schemes, similar to London’s ‘Boris bikes’, with the vehicles made available on a short term rental.

But, aside from the obvious risks of legal claims from victims of e-scooter accidents, what other legal, commercial and operational obstacles will first mover councils and their partners face in launching these schemes? And what lessons might be learnt from existing cycle rental schemes?

PR problems: A number of existing cycle rental schemes have been accompanied by local news reports of cycles being dumped in canals or set on fire. Will potential e-scooter scheme sponsors be willing to take on the reputational risk arising from e-scooters adorned with their branding being littered across pavements or ditched in bushes? If so, when would the council or the company operating the scheme become liable to the sponsor for any reputational damage resulting from such visual pollution or damning press coverage?

Data difficulties: One of the most valuable assets for the council or the company operating the scheme will be the data generated through people’s use of the e-scooters. The data, much of which may contain personal data, could offer valuable insights into city planning and commuting habits, as well as offering details about an individual’s identity and lifestyle. Who will own this data (this issue will need to be dealt with in contracts between the council, operator and sponsor)? When would monitoring of an e-scooter’s location, which may be justified for payment or anti-theft purposes, become an invasion of privacy (this issue will need to be handled in compliance with the General Data Protection Regulation and other applicable privacy laws)?

Redistribution concerns: Many existing cycle rental schemes have experienced real problems with control and re-distribution of bikes. Councils and scheme operators will need to ensure that they have strict rules and procedures in place to deal with moving e-scooters from where they are left to where they are needed to avoid piles of the vehicles in stations and shopping centres and shortages elsewhere. This will be a particular issue if the schemes are to be dockless – where there is no fixed home location and the e-scooters can be picked-up and dropped-off at random locations. In such a case, councils and scheme operators may want to establish a network of assistants, engaged on specific terms, who collect the e-scooters, charge the vehicles and return them to where they are needed.

Budgeting bumps: Councils wanting to peddle e-scooter schemes may have to put the brakes on their ambitions due to competing funding priorities. This could see the emergence of funding models different to the subsidy-driven model typically used to finance existing cycle rental schemes, where the local authority gives the scheme operator cash support. Instead, scheme operators may have to fund the initiatives themselves – or even pay the council a fee for being allowed to run the scheme – with the knock-on effect that e-scooter users might expect to have to pay a higher fee to use the vehicles.

Regulatory wrangles: E-scooters are not currently allowed on the UK’s roads, cycle lanes or pavements. The Government will need to make some swift legal twists and turns to establish where and when the e-scooters could be used, at what speeds they could be ridden, and what protective gear needs to be worn. Any requirement for helmets to be worn could cap uptake, with scheme operators faced with the additional logistical (and financial) issue of dispensing, collecting and sanitising safety equipment.

It is encouraging to see that the Government is keen to look at new ways of thinking about local transport. Councils and scheme operators taking their first steps towards changing people’s last-mile journeys have obstacles to overcome in order to put this thinking into practice, but these obstacles can be ridden with the right approach.