City pauses licensing for new e-scooter, electric bike companies


AUSTIN (KXAN) — The City of Austin paused issuing new licenses to electric bike and scooter companies trying to enter the market while it assesses demand, officials announced Thursday.

“The goal is to help ensure that companies are able to continue providing a safe, reliable, convenient transportation options for residents, while safeguarding mobility,” officials with the Austin Transporation Department wrote in a press release. 

Companies already in the market are required to provide monthly usage reports that include data like the average number of daily trips per deployed unit. City officials plan to analyze this data to determine whether to resume issuing licenses depending on current demand.

At present, companies are limited to 500 units in the Downtown Austin Project Coordination Zone with some exceptions. However, there wasn’t a limit on the number of companies allowed to enter the market. The City also issued supplemental licenses in increments of 250 units outside of the downtown zone.

A total of 10 companies operate in Austin as of Thursday, collectively holding licenses for almost 14,800 e-scooters. There are also permits for 2,350 electric bicycles.

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