Mexico City’s E-Scooter Push Runs Into Thefts, Tough Regulation
Mexico City’s E-Scooter Push Runs Into Thefts, Tough Regulation
(Bloomberg) -- A short-lived push for increasing mobility in Mexico City came to a halt on Tuesday as the sole e-scooter company operating with a license said it was done fighting thefts, at least for now.
Scooter robberies represent a major challenge to Grin Scooters SAPI’s operations in Mexico City, the company said, adding it’s immediately suspending activity in the nation’s capital until further notice. Grin was the only operator to pay for an annual permit recently required by the local government.
Grin’s move joins other bumps in the road for Mexico City residents looking for new and easier ways to get around. The capital constantly tops lists of cities with the worst traffic in the world, and high levels of pollution have led some to seek alternatives to contaminating cars. But its high crime rate and the local government’s aggressive push to regulate the young industry aren’t making it easy.
“We’re going to work on ways to collaborate with the Mexico City government to prevent scooter robberies,” Grin said in the statement. “We hope to be back soon with increased mobility options, better service and hopefully, fewer stolen scooters.”
The city’s new administration recently required all e-scooter companies operating there to apply for an annual permit that included an auction to decide the amount of vehicles each company could have in a given space. Only Grin went through with the process. Bird, another e-scooter company, continues operating without the permit. Lime declined to pay, saying the permit process wasn’t based on any legislation.
Industry data collected by Lime points to 11,000 scooters from different companies operating in the city at the start of the year, providing on average 20,000 rides a day, which solves a clear mobility need among residents, Lime said in the statement.
“The local government’s measures are unheard of in the other 20 countries where Lime operates,” it said. “There’s zero clarity on the future of micro-mobility in Mexico City.”
--With assistance from Cyntia Barrera Diaz.
To contact the reporter on this story: Andrea Navarro in Mexico City at anavarro30@bloomberg.net
To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Dale Quinn
©2019 Bloomberg L.P.