With gas prices on the rise, and the climate crisis front of mind, the future seems electric: car, bikes, and now, scooters. But authorities may have slowed the progress of electric vehicles in Spain recently, follow a decision to ban e-scooters in Madrid.

The city first introduced e-scooters in May 2023, awarding three-year contracts to Lime, Dott, and Tier Mobility. These were the only authorized providers. But a range of complaints forced the city council to rethink its decision, citing safety as the primary concern. Pedestrians have reported a number of cases of reckless driving, which Mayor Jose Luis Martinez-Almeida said poses a risk to public safety. Meanwhile, the government has cited numerous instances of improper parking, with riders leaving e-scooter rentals in non-authorized spaces, cluttering the sidewalks and street.

The city council further added to these complaints, citing a lack of service in certain areas and insurance lapses, which put all three authorized companies in breach of the permit agreements. Furthermore, the companies blocked the council’s efforts to inspect their operations, and then they refused to provide requested information and access to their technology.

The e-scooter licenses are expected to be cancelled in October 2024. The city will not be granting licenses to any other companies at this time.

This ruling comes on the heels of a similar decision in Paris, where voters decided to ban e-scooters in the city, following a series of accidents. Likewise, Melbourne recently voted to ban the vehicles from the Australian city’s central business district.

Lime and Dott have both expressed disappointment in the decision, which the companies will have 20 days to appeal, once the process of revoking permits begins. Both have expressed interest in continuing the conversation with the municipality, in the hopes of satisfactorily addressing the cited problems and reversing the decision. But as of now, the decision stands.  

Discussion Questions 

1. Is the responsibility for addressing public safety concerns on the government, the provider, or the consumer? Or a mixture of the three? Explain.
2. Do you believe the views of corporate social responsibility in this case are culturally specific? Are there certain countries that might view or deal with the problem differently?

Sources: Jack Guy, “Madrid to Ban E-Scooter Rentals, Following Lead Set in Paris,” CNN, September 9, 2024; Marcarena Munoz Montijano, “Madrid to Ban E-Scooter Rentals, Following Lead Set in Paris,” Bloomberg, September 5, 2024; “Madrid to Ban E-Scooters for Reckless Driving and Chaotic Parking,” Reuters, September 5, 2024