Auckland suspends Lime e-scooters as accident claims rise

The company has since apologised for recent spate of accidents

Auckland suspends Lime e-scooters as accident claims rise

Insurance News

By Duffie Osental

An increasing number of accidents involving Lime e-scooters, which has consequently caused a sharp rise in claims figures, has prompted officials in both Auckland and Dunedin to halt the company’s service. 

The New Zealand Herald reported that Auckland Council officials have suspended Lime scooters’ license temporarily and warned the company to rectify a safety defect or risk permanently losing access to the city. In South Island, Dunedin followed Auckland’s lead and withdrew Lime e-scooters on Friday.

Lime has seen a rise in e-scooter accidents due to a defect that causes the wheels to lock unexpectedly. In a dialogue with Dean Kimpton, chief operating officer of Auckland Council, Lime identified 155 reported irregular braking incidents that may have been caused by the locking issue, with 92 of the incidents in Auckland and 30 resulting in injury.

“Myself and Auckland Transport chief executive Shane Ellison have given careful consideration to the most appropriate next steps,” Kimpton told the NZ Herald.

“We have been clear with Lime representatives that the equipment used on our transport network must be safe for use. The safety of people using e-scooters and those that share the environment with them is our number one priority. While we appreciate the amenity that e-scooters offer as an innovative transport solution, safety is not negotiable.”

Lime has since implemented a firmware upgrade it said will address the wheel locking issue and apologised for the incidents.

“We apologise to our riders and the Auckland community for this issue and the disruption in service,” Lime said in a statement. “We remain committed to being a safe and reliable last mile solution and are confident that once we provide additional information to the City Council in the coming days, we will be back on the streets of Auckland soon.”

However, Kimpton is asking for more assurances that Lime’s solution will end wheel locking incidents.

“The initial data told us there has been a reduction in unexpected locking, but from an insurance point of view and as a regulator we need to be satisfied that is the case and we are looking for that third party assurance,” Kimpton told the NZ Herald.

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