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E-bike operators warn London's 'patchwork' licensing risks market exit

E-bike operator Forest has urged Sadiq Khan to accelerate plans for a London-wide e-bike licence, warning that current council fees and inconsistent regulations threaten the market's sustainability.

  • Forest warns that spiralling council fees and a regulatory 'patchwork' could force e-bike operators out of London.
  • The company cited the exit of car-sharing service Zipcar from London as a warning.
  • The government has given Transport for London powers to create a single licensing framework for e-bikes.

E-bike operator Forest has called on Sadiq Khan to expedite plans for a London-wide e-bike licence. The company warned that increasing council fees and a fragmented regulatory system risk forcing operators from the capital.

In a letter to the mayor, seen by City AM, Forest stated that delays to Transport for London’s (TfL) new licensing regime are jeopardising the “sustainability and competitiveness” of the e-bike market. The letter highlighted the collapse of car-sharing service Zipcar in London as an example of what can occur when operating economics become unviable.

Co-founders Agustin Guilisasti and Caroline Seton wrote that the market is under pressure due to inconsistent borough approaches to regulation, operations, and parking, alongside unsustainable revenue-sharing and rising enforcement costs. The letter has also been signed by several other organisations, including the London Cycling Campaign and the Bikeability Trust.

City AM previously reported that some boroughs have significantly increased operating scheme costs, with Forest claiming charges have risen by as much as 15,100 per cent since 2022. One operator reportedly faced over £80,000 in permit and compliance costs before deploying bikes in the City of London, in addition to monthly enforcement fines.

The government has granted TfL powers to establish a single licensing framework, which will eventually replace individual agreements between operators and London boroughs. Forest welcomed this legislation but urged Khan to direct TfL to publish a clear timetable for its implementation.

Pressure is also mounting on operators regarding rider behaviour and bikes obstructing pavements. Forest has begun fitting number plates to approximately 500 bikes in Richmond to improve identification following incidents. Kensington and Chelsea has impounded thousands of rental bikes in response to complaints about obstructions.

Why this matters: The sustainability of shared e-bike services in London is at risk due to current regulatory challenges and rising costs.

What this means for you: The ongoing regulatory issues could affect the availability and cost of shared e-bike services across London.

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