E-bike wars have broken out again in London after Hackney council agreed a £93m deal with two firms – but banned the capital’s second biggest bike firm from the borough.
Hackney’s decision to award exclusive contracts to Lime and Voi to operate dockless hire bikes is likely to cast further doubt on a Londonwide set of rules for e-bikes, including where they can be parked, ever being agreed.
The deal is expected to generate vast revenues for the cash-strapped council, which it will be reluctant to lose under a city-wide licensing system.
However, the contractual requirement to cap the cost of a 30-minute ride at £1.75 for borough residents will limit how much the town hall receives.
Hackney says the five-year contract, which starts next week, includes “tougher measures to tackle bikes blocking pavements and improve rider behaviour”.
Forest, which operates in 18 boroughs and prides itself on being founded in London and supporting community activities such as girls’ football, is said by well-informed sources outside the company to be “furious”.
The Standard was told that the council’s decision effectively allows Lime to retain its monopoly stranglehold in Hackney.
Voi only operates in four other London boroughs - none of which border Hackney - and is unlikely to be able to offer serious competition to Lime.
Earlier this summer, Hounslow council effectively banned Lime, the capital’s biggest e-bike hire firm, from the west London borough when it signed contracts with Forest and Voi.
This has created a “Checkpoint Charlie” situation for riders in west London, who find Lime bikes suddenly stop working when they cross the Hounslow borough boundary – leaving scores of e-bikes abandoned on Kew bridge and Chiswick bridge.
However, Forest riders will still be able to ride through Hackney - but not park the bikes - as Hackney council has not required the same GPS “geo-fenced” restrictions as Hounslow.
Forest bikes can be hired in Haringey, Islington and Tower Hamlets – all of which have borders with Hackney – but not in Hackney itself.
Hackney is one of London’s leading boroughs in terms of cycle journeys and has had an exclusive deal with Lime in place since 2022.
The Labour-run council’s contract with Lime and Voi will mean 2,500 e-bikes will be available to hire across the borough.
These are in addition to the docked “Boris bikes” already provided in Hackney by Transport for London.
It is thought that Hackney will take about a 30 per cent cut of Lime’s income from bike hires.
It is unclear whether the contract will be worth £93m in income to the council or whether this is the amount Lime and Voi expect to generate from hire income – with the council then taking a slice of their profits.
If Lime, as the market leader, is expected to generate the bulk of the £93m, then it may have to generate as many as 10m bike rides a year in the borough – about four times more than current levels.
As part of its tender, Hackney sought bids where the “where the lowest available tariff is comparable to, or cheaper than, a bus fare” – currently £1.75.
The £1.75 fee for a 30-minute ride – less than half the £3.99 normally charged by Lime – will only be available to Hackney residents who make a ride that remains within the borough boundary.
However, riders may find it difficult to establish whether they have crossed the borough boundary – especially if riding to or from Victoria Park, the Olympic Park or Hackney Marshes. It may also be a challenge for Lime’s GPS bike-tracking system.
Rides on Voi bikes within Hackney will be capped at £1.75 for 30 minutes, while Lime will offer a LimePass+ monthly pass for £45, which caps every ride at £1.
It is understood that the council selected the winning bids based on the percentage of revenue that each firm was prepared to surrendur - not on the expected total cashflow the council could expect.
Hackney says the bikes will have to be parked in designated bays – with Lime and Voi reportedly facing £80 fines for each bike found abandoned on the pavement.
As part of the agreement, both operators will introduce a wider variety of bikes, including lighter models for easier riding, e-bikes with child seats, and e-cargo bikes for transporting bigger loads such as shopping or small furniture.
A Lime bike with a child seat can be hired in Paris, but nothing similar has been seen from Lime in London.
Alice Pleasant, senior public affairs manager at Lime, said: "Being in Hackney for the past five years has been a privilege. The borough has an incredibly vibrant cycling community, and we've seen the council's investments in infrastructure go a long way to create a safer, more connected network for everyone over the past few years.
“We've also been collaborating with the council to invest in infrastructure ourselves. This year, we've increased dedicated e-bike parking across London by 40 per cent, with more new parking planned for Hackney in the next few months.”
Harry Foskin, Voi's UK public policy manager, said: "We’re thrilled to be launching e-bikes in Hackney, a borough at the forefront of active travel in London.
“Our responsible, collaborative, and transparent approach to shared e-bikes has proven popular with London boroughs, demonstrating that it’s possible to deliver a high-quality service while reducing street clutter and improving parking standards.
“Our launch in Hackney marks a significant milestone: Voi is now an established player in London’s e-bike market. As we enter this new phase, we remain committed to growing responsibly in the capital - offering even more Londoners the opportunity to travel affordably, sustainably, and safely.”
By the end of 2026, the council will have created 400 designated dockless bike parking bays across the borough, where riders will be required to end their trips.
Forest had submitted a bid to the council in a bid to expand its operations across east London as it positions itself as the “sustainable” alternative to Lime, which is headquartered in the US.
Alex Berwin, head of policy at Forest, said: “As a company founded in London for Londoners, naturally we are disappointed not to have been appointed in Hackney.
“We remain focused on bringing accessible, affordable and sustainable transport to Londoners and we stand ready to work with city regulators to develop a more consistent way of awarding contracts going forward.”
Cllr Sarah Young, Hackney’s cabinet Member for climate change, environment and transport, said: “A phenomenal 2.5 million dockless e-bike trips ended in Hackney this summer, showing that it’s an incredibly popular, sustainable way for people to get around, especially for those who don’t own a bike.
“By making e-bike hire the same cost as a bus fare, we’re supporting more people to take up cycling, while also introducing tougher measures to ensure bikes are parked responsibly and our streets remain safe and accessible.”
TfL and London Councils, which represents the 33 boroughs, have been working for more than a year on a Londonwide set of rules for dockless e-bikes and e-scooters, in a bid to end the “patchwork” set of rules that vary by borough and which can inhibit the use of e-bikes for longer trips.
However with Hackney set to generate millions of pounds a year in revenue, and other boroughs likely to follow suit, it is likely to be even more of a challenge to strike a deal that is acceptable to all boroughs.
The legal provisions enabling TfL to set Londonwide rules for e-bikes are contained within the Government’s English devolution bill, which is some way from passing into law.
One source with detailed knowledge of the situation said that a city-wide set of rules was “at least two years away”.
Hounslow council is trying to find a solution to the problem of Lime bikes being unable to be ridden in its borough, which includes Chiswick and Brentford town centres.
But Voi has made clear it wants the council to stick to the terms of its contract – which only permit Voi and Forest bikes within Hounslow.
Earlier this week, Forest announced its sponsorship of a new South London Girls’ Football League for Under 7s, helping to widen access to sport for girls and enabling six teams to compete each Sunday. The league launched at Colfe’s School in Blackheath.
Previously, the league’s youngest competitive age group for girls began at Under 9, meaning that many aspiring young female players either had to join boys’ teams or play in older age groups.
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