TEMPE, AZ (3TV/CBS 5) -- Lime announced Monday it’s pulling electric scooters out of Tempe due to the City’s new regulation and fees.

Lime released a letter on Feb. 11 addressed to Mayor Mark Mitchell and council members announcing its decision.

[RELATED: Surge of scooters in Tempe and Scottsdale]

The company states it had issues with the City’s liability requirements and cost of doing business.

Lime said the City’s liability requirements “remain an unprecedented overreach” and goes “beyond those in other cities by forcing operators to take on risk well beyond their control and outside the scope of its business operations, indemnifying the City’s own conduct in maintain roads or sidewalks in safe condition.”

The City’s new regulations also require, by signing the form, that operators must agree that scooters are “inherently hazardous.” A standard Lime says is unprecedented among the over 100 markets in which it operates.

[READ MORE: Scottsdale releases strict rules for electric scooters]

Lime also says in the letter, due to the required Shared Active Transportation Vehicle license (SATV), cost of doing business in Tempe would become one of the highest in the country.

Because of this, Lime claims at this cost, it remains concerned it will be forced to raise its affordable rates and undermine its low-income Lime Access program.

[MORE: Glendale is latest city pushing to ban rentable electric scooters]

Lime said the current fee is “approximately 20 times more costly per mile than cars are taxed” which minimizes the benefits of shared vehicles like electric scooters.

Lime said while it is leaving Tempe, it remains committed to continuing to serve Tempe customers.


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