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Emblem of Lime (Lime)
Lime, the world’s main operator of rented electrical scooters and bikes, stated in a press release on Wednesday that it is going to be withdrawing its operations from South Korea on June 30.
Fixed visitors legislation revisions and differing native authorities insurance policies had been named by the corporate as the first causes behind this “tentative suspension” of operations.
Lime noticed a pointy drop in its clients in 2021, when a legislation that made carrying helmets necessary for individuals using electrical scooters was put in place.
Scooter rental companies have additionally complained concerning the volatility of native tow insurance policies. Seoul stated in March that it might permit a 60-minute grace interval for scooters earlier than towing however backtracked simply sooner or later later. Seoul’s tow coverage shaved off 10 to twenty p.c of Lime’s gross sales final yr in towage.
Insurance policies regarding minimal age and licenses have additionally been amended in 2022 amid drastic Visitors legislation revisions.
Altering legal guidelines make the e-scooter rental sector unpredictable, stated business insiders.
Lime made it clear that the suspension of operations was momentary, however didn’t give a timeline on when it might return.
“As Korea’s micro-mobility market continues to develop, we hope to be again with upgraded companies and gadgets,” stated Lime.
In the meantime, Lime will not 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)
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