Shared micro-mobility firms Lime, Dott, and Tier have received a significant setback as Paris has decided to prohibit rental e-scooters from its streets. The industry is concerned that this decision in Paris, where free-floating scooters gained traction in 2018, will have a far-reaching impact in other urban areas.
Despite the fact that companies have cited Paris as an example of how they can collaborate with cities, the city has been one of the most stringently regulated e-scooter markets. Paris has become the first city to entirely overturn its contracting policy with shared micro-mobility firms, despite reducing top scooter speeds to as low as 10 kilometers per hour (around 6 miles per hour) and imposing penalties for not parking in designated areas.
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Parisians engaged in a contentious referendum on April 2, 2023, and decided to prohibit rental electric scooters from their city streets. According to DW Global Media, the proposed ban received support from 89% of voters, while 11% were opposed. However, the turnout for the referendum was only 7% of the 1.3 million eligible voters.
After the outcome was announced, Paris' Mayor Anne Hidalgo spoke to the press and stated that "Parisians have expressed a significant disapproval of retaining shared e-scooters, and they have provided a clear direction and will follow their decision."
Why has Paris banned e-scooters?
In 2018, Paris was among the first European cities to introduce e-scooters, which were considered an environmentally friendly option to cars. These compact vehicles can be parked anywhere by users and then retrieved with the assistance of mobile applications.
However, as per The Independent, trottinettes, or e-scooters, encountered issues when many Parisians objected to them, claiming that they were hazardous to traffic. The opposition to e-scooters increased even more as they became very popular among tourists. Detractors accused individuals of recklessly operating battery-powered vehicles, disregarding traffic regulations, and causing severe accidents.
As a result of increasing complaints, the local authorities implemented strict regulations, such as creating specific parking areas, capping top speeds, and limiting the number of service providers.
However, these measures did not reduce Parisians' increasing reluctance to e-scooters, as the number of accidents involving these vehicles continued to climb. According to DW, Paris documented 459 accidents involving e-scooters or comparable modes of transportation in 2022, three of which were fatal.
In January 2023, Mayor Hidalgo declared a vote on prohibiting e-scooters from Paris streets. According to sources, more than 103,000 registered voters in the city, which has a total of 1.38 million registered voters, cast their ballots, and an overwhelming majority supported removing the micro-vehicles from Paris.
How is the micro mobility market affected by the e-scooter ban?
Micro-mobility is considered to be a pioneering transportation solution that has shown significant potential in easing traffic congestion.
According to the BIS Research report, the global micro mobility market is expected to reach $3.54 billion by 2025 from $2.55 billion in 2019, growing with a CAGR of 17.03% during the forecast period 2020-2025.
Though, the e-scooter ban in Paris has had a significant impact on the micro-mobility market. Paris, as one of the most extensively regulated e-scooter markets in the world, served as a benchmark for other cities looking to introduce shared micro-mobility programs.
The ban has created uncertainty among micro-mobility firms that were previously confident in their ability to comply with regulatory requirements. As a result, the industry may face increasing scrutiny from cities looking to implement or maintain micro-mobility programs, and firms may need to reconsider their strategies to ensure compliance with regulations.
As a closure, the e-scooter ban may cause businesses to reassess their investments in shared micro-mobility and seek to diversify their offerings or expand their operations in other regions.
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