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Posted: 2024-09-19 01:16:26

An e-scooter hire company is still making money on the streets of Brisbane, despite losing a contract last month after being accused of fraud by the city's council.

Brisbane City Council tore up its contract with Beam Mobility on August 30, alleging the company deliberately under-reported its scooter numbers to avoid paying fees.

However, the e-scooters continue to be used, and council has given no concrete date on when Beam must leave Brisbane.

Beam e-scooters

Beam Mobility insists the e-scooter oversupply was accidental. (ABC Radio Brisbane: Kenji Sato)

A council spokesperson confirmed council was still making money from Beam on a fee-per-trip model.

The spokesperson said they were negotiating with Beam on an exit strategy and the e-scooters should be gone by early December at the latest.

"The removal of Beam from Brisbane is being finalised as soon as possible," the spokesperson said.

"[The scooters] will be progressively removed over three months, in line with the conditions of the contract."

So far 1,000 e-scooters have been removed from the streets of Brisbane, according to the council.

Brisbane Beam workers are continuing to service and replace batteries in the remaining e-scooters, and the Beam app is still promoting weekly and monthly membership to Brisbane users.

Beam Mobility would not comment to ABC Radio Brisbane.

However, it is understood subscription holders will be refunded and users will still be covered by the usual insurance policies if injured.

In an earlier media release, Beam Mobility said the extra undocumented e-scooters were accidental and not a strategy to dodge council fees.

Brisbane Lord Mayor Adrian Schrinner said in council's view the breaches were a systemic, deliberate move by the micromobility company. 

A man with a mic

Adrian Schrinner says Beam has broke the trust of the people of Brisbane. (ABC Radio Brisbane: Kenji Sato)

"It's a disappointing situation and one that's been experienced in cities all around the world," Cr Schrinner said.

"Effectively what was discovered was just not on — there was a significant breach of trust both with council and the community."

Beam has been banned in other Australian and New Zealand cities following fraud allegations, including in Canberra, Wellington, and Auckland.

Two e-bicycles

Lime will temporarily put out more e-scooters and bicycles. (ABC Radio Brisbane: Kenji Sato)

Cr Schrinner said Lime, another micromobility company, would temporarily increase its fleet of e-scooters and e-bikes to make up for Beam's shortfall.

The council said it would also lock in a second company to replace Beam.

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