Logo of Lime (Lime)
Lime, the world’s main operator of rented electrical scooters and bikes, stated in an announcement on Wednesday that it will likely be withdrawing its operations from South Korea on June 30.
Constant visitors legislation revisions and differing native authorities insurance policies have been named by the corporate as the first causes behind this “tentative suspension” of operations.
Lime noticed a pointy drop in its prospects in 2021, when a legislation that made sporting helmets obligatory for individuals driving electrical scooters was put in place.
Scooter rental providers have additionally complained concerning the volatility of native tow insurance policies. Seoul stated in March that it might enable a 60-minute grace interval for scooters earlier than towing however backtracked simply someday later. Seoul’s tow coverage shaved off 10 to twenty % of Lime’s gross sales final 12 months in towage.
Policies regarding minimal age and licenses have additionally been amended in 2022 amid drastic Traffic legislation revisions.
Changing laws make the e-scooter rental sector unpredictable, stated trade insiders.
Lime made it clear that the suspension of operations was short-term, however didn’t give a timeline on when it might return.
“As Korea’s micro-mobility market continues to develop, we hope to be back with upgraded services and devices,” stated Lime.
Meanwhile, Lime shouldn’t be the primary to withdraw from Korea‘s micro-mobility market. Singaporean shared electrical scooter firm Neuron Mobility, and German agency Wind each suspended their operations in 2021.
By Lee Seung-ku (seungku99@heraldcorp.com)