Lambeth tightens rules on dockless e-bikes as usage soars and new tiered fees introduced

Lambeth Council is set to tighten its grip on the rapidly expanding dockless e-bike market, replacing its existing agreement with operators with a more robust two-year Memorandum of Understanding running from March 2026 to March 2028.

A Cabinet Member Delegated Decision report recommends scrapping the current flat £700-per-bay annual charge and introducing a new tiered access fee based on the size of each operator’s fleet.

Operators will be required to pay annually in advance, rather than quarterly, and will face strengthened monitoring, enforcement and financial penalties for non-compliance.

The detailed financial arrangements sit in a confidential Part II report on the grounds of commercial sensitivity.

The move comes amid a sharp rise in micromobility use in the borough. According to the report, dockless e-bike trips increased by 80 per cent between 2024 and 2025. July 2025 alone saw more than 850,000 trips recorded in Lambeth, while six million journeys were logged between January and October.

To accommodate demand, the council has expanded its network of designated dockless bays to more than 400 locations, amounting to over two kilometres of kerbside space.

But the growth has not been without controversy. The report acknowledges ongoing concerns about pavement obstruction, overcrowded bays, broken or abandoned bikes and anti-social behaviour.

Complaints from residents, councillors, Business Improvement Districts and neighbourhood forums have frequently centred on hazards to wheelchair users, people with visual impairments, older residents and parents with prams.

The revised MoU seeks to address those issues by introducing a borough-wide “No Parking Zone”, meaning bikes must be left only in demarcated bays unless expressly authorised.

Operators will be subject to strict removal timeframes for obstructive or abandoned bikes, escalating financial charges for over-deployment, and potential suspension or termination of their participation for persistent breaches.

Enforcement action, including seizure and storage of non-compliant bikes, will be carried out via the council’s parking enforcement contractor using existing Highways Act powers.

The council also intends to require live data sharing from operators, covering trip numbers, fleet levels and compliance metrics. Failure to provide or maintain access to such data would be grounds for non-renewal or termination.

Alongside enforcement measures, the agreement introduces an “Affordable Travel Benchmark”. Each operator must offer at least one fare option that is no higher than the cost of a single London bus journey — currently £1.75 — for a typical 30-minute trip.

Operators will be expected to demonstrate transparently how their pricing structures, including passes and discounts, meet that benchmark. The MoU also encourages concessionary tariffs and targeted measures in areas of higher deprivation.

Legally, the council accepts that it remains constrained. There is currently no dedicated national legislation enabling boroughs to license or exclude dockless operators.

As such, the MoU remains voluntary rather than contractual, and the council cannot guarantee exclusivity or prevent new entrants.

The financial model underpinning the scheme is described as transitional. While the revised access fees are intended to cover enforcement and management costs, the report notes that income should be treated as temporary ahead of a future London-wide licensing framework.

Expansion of dockless bays has been funded through Transport for London’s Local Implementation Plan allocations of £78,000 in 2024/25 and £94,000 in 2025/26, with no additional capital investment anticipated.

An Equalities Impact Assessment accompanying the report identifies obstruction of footways as the principal risk, particularly for disabled and older residents. The council says the strengthened MoU, combined with carriageway-based bay design where possible, is intended to mitigate those impacts and improve accessibility.

The decision is due to be taken on 10 March, with the new agreement scheduled to take effect later in 2026 following the completion of call-in procedures.

If approved, Lambeth will move to a more structured and enforceable management regime for dockless bikes, while still operating within the limits of a voluntary framework until London-wide regulation is introduced.