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The Canberra Times
The Canberra Times
Steve Evans

Verbal street war over Canberra e-scooters

One of the two operators of e-scooters in Canberra has laid into its rival over what it called "reprehensible" conduct.

Neuron said allegations that Beam Mobility had given untrue numbers of scooters on streets gave Beam an unfair advantage and possibly deprived the ACT government of revenue.

Neuron was reacting to revelations in The Weekend Australian that in the Australian cities, including Canberra, where Beam Mobility e-scooters were permitted, the company was actually operating more scooters than it had registered.

In response, Beam Mobility said it would appoint an independent auditor to review its operations. It said it was prepared to reach settlements with governments and councils which had permitted its scooters in their jurisdictions.

But its rival Neuron remains angry, feeling that any secret running of extra Beam scooters would have deprived it of business and revenue.

"This kind of deception is a terrible breach of trust and ethics and is totally reprehensible; it does not in any way reflect how the wider industry operates," a Neuron statement said.

The Weekend Australian had got hold of internal Beam Mobility documents which talked of a "Running Hot Project" to disguise the scheme. The scheme, according to the documents as published, would generate $150,000 in extra income.

Beam Mobility's chief executive Alan Jiang said on Friday that the understatement of its scooter numbers was a mistake and not part of a scam. Mr Jiang said in a statement that the company was "deeply apologetic" for going over vehicle caps but it was not intentional.

Beam Mobility e-scooters in Canberra in October 2020. Picture by Sitthixay Ditthavong

"We understand the importance of our social licence in our key markets and recognise that we need to do better in the future to meet the high standards our partners set for us," Mr Jiang said.

"We emphatically reject any suggestion that this was a scheme to deprive councils of revenue."

The rival Neuron does not accept this view.

The argument made by Beam's critics is that Beam's alleged behaviour was deliberate and resulted in depriving councils of income. They also argue that Beam's competitor was deprived of trade because Beam had a secret unfair advantage.

The ACT said it had received information about Beam Mobility earlier in the month. It is trying to ascertain if Beam is operating more than the 950 e-scooters for which it has a licence in Canberra.

"The ACT government is currently investigating these claims and liaising with other councils and the operator," the spokeswoman said.

"We have no further comment to make as the matter is still under investigation. We take allegations of unethical behaviour very seriously."

Beam Mobility has been authorised to deploy 950 e-scooters in Canberra, with 750 in a central zone between Watson and Narrabundah, and a further 200 in satellite areas.

Beam charges riders $1 to unlock a scooter and then 45 cents for every minute of the ride. Neuron scooters cost $1 to unlock and 38 cents per minute. Three-day, weekly and monthly passes are also available for regular users.

The government-issued permits for the scheme are set to expire later in 2024.

"Prior to issuing any long-term permits (i.e., up to three years) the ACT government will undertake a procurement process to test the market," a government spokeswoman said.

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