Micromobility operators call for procurement reform

A coalition of shared micromobility providers is calling on the UK government to reform local procurement practices.

A joint letter was sent to transport minister Simon Lightwood by operaors Voi, Lime, Dott, Forest and Bolt along with the charity Collaborative Mobility UK (CoMoUK).

They expressed concern local authorities placing disproportionate weight on financial commitments in tenders. 

The operators say councils are increasingly awarding contracts based on the share of future revenue promised by bidders, rather than prioritising safety standards, service quality or affordability. 

The letter said this approach can lead to inflated prices for users, lower service quality as operators face squeezed margins, and the outright collapse of services.

The letter called business models of the early years micromobility “unsustainable”. It cautions that squeezing operators’ margins jeopardises long-term viability. 

The operators that authorities often fail to assess the realism of bidders’ business plans when weighing revenue-share commitments.

The coalition wants the Department for Transport (DfT) to issue best practice guidance for micromobility tenders. 

Richard Dilks, chief executive of CoMoUK, said: “Shared e-bikes and e-scooters are delivering real benefits across UK cities–from cutting congestion to providing affordable connections to public transport. But if procurement processes become a race to the highest bidder, those public benefits are put at risk.

“There have sadly been a number of failed procurements in recent years, which have unfortunately resulted in a great deal of wasted time, energy and expense for both local authorities and operators. We are already seeing the proof that overly burdensome financial requirements ultimately risk the future of these schemes.

“We know from experience that placing affordability, safety, and user experience at the centre of procurement leads to resilient and popular schemes,” Dilks said.

“The government has an opportunity here to set out clear guidance so councils can avoid the pitfalls of short-term financial thinking.”