TEMPE, AZ (3TV/CBS 5) - Razor may be the latest dockless shared scooter company to leave Tempe.

The California-based company sent a letter to the City on Tuesday, saying the new license agreement threatens its ability to stay in the city.

"The daily $1.06 per (scooter) fee is, without exaggeration, orders of magnitude higher than any other market in which we currently operate or are planning to operate," said Razor CEO Danny Simon in the letter.

Simon said the company has tried working with the City but to no avail so far. He said the current conditions mean Razor would have to leave Tempe in the next 30 to 60 days.

He added it's likely other electric dockless scooter companies will be forced to leave Tempe.

Simon said he wants to work with the City "over the next month in hopes of finding a way to operate sustainably without completely suspending our service."

Lime, a similar dockless scooter company, sent a similar letter to the City Council on Monday, saying it had to pull the scooters. They also blamed the "unprecedented" liability agreement and the $1.06 per scooter per day fee.

Lime said it'll still have scooters in Scottsdale, where there is no such fee.

Bird, the first company to bring dockless electric scooters to Tempe, is remaining in Tempe.

In January, the Tempe City Council passed a license agreement requiring an application fee and the scooter fee.

Tempe City Councilman Kolby Granville said he supports the scooters but the City is the one paying for a lot of the additional costs of having the scooters there like more law enforcement, signage, infrastructure and lawsuits.

"Their argument is essentially, we can't make money without pushing costs onto other people," Granville said. "Our answer is you don't get to do that."

He said the fees allow the companies to place the scooters on sidewalks. Granville also said companies like Razor and Lime are going to the cities considered "low-hanging fruit," where the regulation isn't as strict and they can make the most money. 

"It's sad but that's the way it goes," said Granville.

While Razor says it plans to stick around for at least another month, Granville believes the scooters could be gone within a week.

Razor has submitted the most recent application. Granville said Jump, Uber's dockless electric scooter company, is in the process of filling out an application.

 


Copyright 2019 KPHO/KTVK (KPHO Broadcasting Corporation). All rights reserved.

 

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(4) comments

AsicHacker

All of them provide 0 value to the community. #BuhBye

JustinP

Let them go. Their choice. Atlanta made it city choice NO electric scooters allowed

Big Rich

I find one of these in my yard, it goes into the black bin.

nuusmaan

Good riddance!

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