Dubious Paris Ouster Vote Shatters e-Scooter Rental Firms

The business of renting out electric scooters is taking a turn for the worse. Parisians on Sunday voted to ban so-called e-scooter rentals from their streets.

Photo Insert: It’s a big blow to startups like Uber Technologies-backed Lime, or Dott, which had hitherto seen the French capital as an ardent supporter of their wares.

Turnout for the vote was low - only 7% of the population registered for it, and they were skewed towards older age groups, who tend not to ride such scooters anyway, Karen Kwok wrote in a column for Reuters Breakingviews.

It’s a big blow to startups like Uber Technologies-backed Lime, or Dott, which had hitherto seen the French capital as an ardent supporter of their wares.

Companies that operate in Paris must pull their combined 15,000-strong e-scooter fleets by September.

The bigger concern is that other cities may follow suit, as citizens fret over accidents caused by temporary drivers, or e-scooters cluttering up pavements.

The sector was already facing a tougher environment for raising capital and is struggling to turn a profit. Shares of New York-listed Bird, for example, lost 97% of their value in 2022.

The vote is also a potential red light for Lime, which is eyeing a listing. The Parisian backlash kicks e-scooters’ investment case even further downhill.

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