The streets of Australia are buzzing with a new electric ride, as rental ebikes surge in popularity while their e-scooter counterparts face a surprising downturn. This shift comes amidst a wave of public concern and regulatory scrutiny surrounding e-scooters, leading some to label it a "moral panic." But is this just a temporary trend, or a fundamental change in urban mobility? Let's dive in.
Sydney is leading the charge in the ebike revolution. In 2025 alone, the number of these electric steeds nearly doubled on its streets, thanks to a significant expansion by US operator Lime. This stands in stark contrast to the e-scooter market, which, despite an earlier rapid adoption across Australia's capital cities (with Sydney being the exception), has seen its momentum stall. Operations were put on hold throughout the year due to mounting safety worries, leading to restricted availability and a general dip in public favor.
Here's where it gets controversial: The safety concerns surrounding e-scooters are undeniable. Major players like Neuron and its subsidiary Beam have collectively reduced their e-scooter fleets by nearly a tenth, now numbering around 12,500 units across 24 locations. The situation escalated in Perth, where the tragic death of a man in an e-scooter crash led to the removal of approximately 1,000 rental scooters from its streets. A subsequent inquiry in Western Australia suggested that e-mobility could be reinstated, but only under stringent regulations.
And this is the part most people miss: The economic impact of e-scooter struggles is becoming evident. In Bendigo, Beam's 250 scooters were taken off the roads after failing to meet ridership expectations, with users completing fewer than 55,000 trips. Similarly, the City of Adelaide reported a decline in ridership for its 2,000-strong e-scooter fleet, dropping from 543,000 trips in 2024 to 514,000 in 2025. Even in Melbourne, Neuron and Lime were compelled to pull their scooters from the Yarra area due to increased council fees, after already being ousted from the city's CBD in 2024.
Industry consultant Stephen Coulter of Zipidi points to what he calls a "moral panic" over safety and injuries as the primary driver of this e-scooter slowdown. He noted that some local governments, like the City of Melbourne, "overreacted" by withdrawing the devices abruptly. However, Coulter also suggested that state governments could play a pivotal role in reviving e-scooters in 2026, with Victoria and New South Wales already approving share scheme operators, and Western Australia and Queensland reviewing their respective inquiries.
In the meantime, a clear beneficiary has emerged: the humble ebike. Coulter observed that residents in Melbourne have increasingly turned to Lime's ebikes as an alternative. "Bikes are picking up in the absence of scooters, and the operators are becoming better at aligning them with customer need," he stated. Cities that once exclusively embraced e-scooters are now pivoting towards ebikes. Hobart welcomed Beam bikes in May, Canberra has opened applications for both ebike and e-scooter operations, and Adelaide is set to follow suit this year.
Lime's Asia Pacific head, Will Peters, expressed disappointment over Melbourne's e-scooter ban but remains optimistic about expanding their ebike offerings. While currently capped at 1,200 ebikes in inner Melbourne, Lime has also introduced bikes and scooters in the Darebin municipality and is eyeing expansion into nearby Merri-bek. Peters highlighted Sydney as Lime's most successful market, where e-scooter use is prohibited. Over 2025, Lime more than doubled its Sydney ebike fleet to at least 7,000 units, with industry sources suggesting the actual number could exceed 10,000.
Lime is actively working to further boost ridership in Sydney, introducing redesigned bikes and subscriber discounts, and is in negotiations to expand its reach as far west as Parramatta. Peters boldly stated, "How do we make Sydney the best market? I think we can be bigger than London, we can be bigger than Paris." This ambition echoes the ebike boom seen in Paris, which, after being the first European city to embrace shared e-scooters, became the first to ban them in 2023.
Sydney's e-scooter prohibition has undeniably fueled the rapid growth of rental ebikes. Government data indicates that 600,000 NSW residents now use a shared ebike 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. This surge in demand has attracted new competitors, with HelloRide deploying 3,000 ebikes and Ario introducing a fleet of 2,700 since its entry in late 2024.
It's important to note the distinction: Legal shared ebikes are permitted for road use and are restricted to speeds of 25km/h and power of 250 watts. This is in contrast to illegal and modified ebikes, which have faced crackdowns due to a nationwide surge in injuries. Preliminary police data from Queensland in 2025 revealed that e-scooters and other personal mobility devices were involved in 10 deaths and 440 crashes. In comparison, legal ebikes, both privately owned and rented, were linked to 4 deaths and 235 crashes.
Adam Rossetto, general manager of Ario, believes that the relative safety of shared ebikes compared to e-scooters has encouraged this customer migration. "Shared ebikes are coming back into the fore," he commented. "They provide a more traditional approach to mobility... that delivers less stupidity, I think, from a section of users."
What are your thoughts on the e-scooter "moral panic"? Do you believe ebikes are a safer and more sustainable alternative for our cities? Share your opinions in the comments below!
