Denver is trying a new strategy to address micro-mobility issues in the city, as the Denver City Council approved major changes to the city’s electric scooter, electric bike and shared bike operations Monday.

The new policy, which officials expect to roll out this week, will provide five-year licenses to the transportation companies Lyft and Lime, limiting operating rights for rentable e-scooters and bikes in Denver to those two companies – down from the current six companies.

The proposal will also change the number of e-scooters and bikes in the city, where they are distributed and how they are parked.

The City Council passed the policy in an 8-4 vote – with one council member absent – following months of discussion and controversy among council members.

“Is this perfect? Probably not,” said Councilman Jolon Clark, who voted in support. “But it’s time for us to move forward. This will get us back up and running with a solid plan for bikes and scooters in our city, and those are key to providing real options for getting people out of single-occupancy vehicles.”

Throughout the drafting and committee process, several council members expressed concerns with the policy. Main issues have included that the contracts are too long, that using two companies is too exclusive and that both providers should not be ride-sharing companies.

Councilman Chris Hinds also fought for inclusivity in the policy, as the contracts only require that the two companies try to make some accommodations for people with disabilities within one year of operating.

“Although we’ve raised several concerns about these contracts, these contracts have not been changed,” Hinds said.

Hinds, in addition to council members Candi CdeBaca, Amanda Sandoval and Jamie Torres, voted against the policy Monday.

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During the council meeting, the Department of Transportation acknowledged that it has shot down the suggestions of council members, saying it needed to keep major elements like contract length and provider numbers the same.

“We felt that we really had got the best deal for the city,” said Nicholas Williams with DOTI. “To go back would really reopen those negotiations and would push us back an unacceptable amount of time.”

Williams said that, by providing long contracts and exclusivity to Lyft and Lime, the city was able to get more investment from the companies. For example, the companies are investing just under $11 million for rider education and nearly $15 million of free and subsidized rides for Denver residents. 

One of the most significant changes to Denver’s current e-scooter and bike operations is the policy’s implementation of parking stations that will range from charging stations and corrals, to boxes painted on the ground and virtual corrals visible through an app.

This parking system will attempt to address the issue of e-scooters and bikes laying on the ground or blocking sidewalks.

Councilwoman Amanda Sawyer pointed to these changes as her rationale for supporting the policy Monday.

“The bottom line for me here is whether the contracts are going to lead to better outcomes for our residents,” Sawyer said. “Scooters are here to stay … that means, scooters will continue to litter our streets and block our sidewalk access and inconvenience our residents unless we do something about it.”

Lyft and Lime will be responsible for installing the stations themselves, with 100 stations expected in the first six months, 200 in the first year and up to 675 for the five-year license duration.

The city will also issue parking citations and other violations directly to Lyft and Lime and, if a complaint is made about improperly parked vehicles to the city’s 311 hotline, the companies will be required to fix them in a specified amount of time.

Areas that receive frequent 311 complaints will have Denver’s right-of-way enforcement agents assigned to watch for and report improperly parked vehicles during their normal activities. Failure to keep e-scooters and bikes in proper parking areas will be met with major penalties.

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Three documented parking violations within 30 days would force companies to launch targeted in-person outreach for parking etiquette; 10 violations in 90 days would result in a 10% fleet reduction for 30 days; and 25 violations in 180 days would result in a suspension of the operating license for 20 days.

Fleet reductions could also be implemented if a company is found to violate contract conditions like deploying more than the permitted amount of vehicles.

The policy also includes plans to improve equitable access to e-scooters and bikes, with 30% of fleets required to operate in areas with low vehicle ownership and high transit ridership. These “opportunity areas” include parts of the City Park West, Five Points, East Colfax and Lincoln Park neighborhoods.

Councilman Chris Herndon of District 8 said these equity plans are essential, as neighborhoods outside of central downtown do not have access to current micro-mobility options.

“The status quo is failing District 8. There are portions of the city where you see little to no (e-scooters or bikes),” Herndon said. “With these contracts, you are telling the companies you will be in these neighborhoods.”

Opportunity areas will not be affected by penalty fleet reductions.

Overall, the policy will increase the number of e-scooters and bikes in Denver, allowing Lyft and Lime 1,500 e-scooters and 300 bikes each. Currently, 3,340 total vehicles are permitted in the city through six different companies.

Lyft and Lime will also be required to equip vehicles with geofencing technology that would automatically slow them down in high-traffic areas.

E-scooters and shared bikes have been in Denver since the Dockless Mobility Pilot Program was launched in 2018. Since then, over 6.1 million people have used the scooters and over 325,000 people have used the bikes, according to DOTI.