Expected Conditions for Hire Scheme Operation and Management

This page outlines the expected Conditions for Hire Scheme Operation and Management.

2.1. Riding rules and device specifications

2.2. Speed limits

2.3. Helmets

2.4. Insurance & Liability

2.5. Parking

2.6. Device requirements

2.7. Data privacy

2.1 Riding rules and device specifications

All devices are to be ridden in accordance with State regulations. A summary of the basic rules and device specifications for each device type is provided below.

Agreements between councils and operators should clearly specify that devices for hire must be consistent with device specifications in the State regulations. In addition, the agreements should specify that operators must take all reasonable steps to ensure that riders comply with the regulations – for example, by speed limiting devices, measures to support helmet use and discourage footpath riding, riding under the influence of drugs or alcohol and other breaches of the road rules applying to devices.

As a minimum measure, agreements could require that operators make all riders aware of their obligations to comply with the roads rules before hiring a device (for example by signage on the devices indicating key road rules, providing information on road rules on operator apps and requiring riders to agree to comply with laws as a condition of hiring the device).

Bicycles

Bicycles riders must:

• Ride to the conditions and not exceed the speed of the road/path being travelled on (e.g. in a street shared with pedestrians and marked by a shared zone sign, the speed limit is 10 km/h).
• Wear a helmet at all times.
• Follow traffic rules.
• Have front and rear lights if riding at night.

 Bicycle riders cannot:

• Ride on the footpath (unless the rider is under the age of 13; or someone over the age of 13 accompanying a child under the age of 13; or has a medical exemption).
• Use a mobile phone while riding.
• Ride while under the influence of drugs or alcohol.

E-bike devices must:

• Have a pedal powered drive train with chain.
• Not exceed 250 watts.

More information regarding the rules that apply to bicycles can be found on the VicRoads website.

E-scooters

E-scooter riders must:

• Be aged 16 years and over.
• Ride to the conditions and not exceed the speed of the road/path being travelled on.
• Not exceed the maximum speed of 20 km/h.
• Ride only on shared paths and roads that have a speed limit up to 60km/h, or on bike or shared paths.
• Wear a helmet at all times.
• Follow traffic rules.
• Have front and rear lights if riding at night.

E-scooter riders cannot:

• Ride on the footpath.
• Use a mobile phone while riding.
• Ride while under the influence of drugs or alcohol.
• Carry passengers or animals or ride in tandem.
• Ride on roads that have a speed limit over 60km/h.

A legal e-scooter in Victoria is one which:¹

• Transports a person while the person is standing.
• Has only two wheels (one in front of the other).
• Has a footboard between the front and rear wheels.
• Is steered by means of a handlebar.
• Has a maximum speed capability of 25 km/h when ridden on level ground.
• Can move using an electric motor or a person pushing one foot against the ground.

More information regarding the rules that apply to e-scooters can be found on the VicRoads website.

2.2 Speed limits

Speed limits and/or powered speed limitations are applicable to devices which use an electric motor (e-scooters) and electrical power-assist (e-bikes). Conventional pedal bicycles must not exceed the speed limit of the street (unless otherwise signposted).

E-scooters

E‑scooters involved in share schemes must be programmed to not exceed the maximum legal speed limit for e‑scooters in Victoria, which is 20 km/h.

E-bikes

E-bikes involved in share schemes must be programmed to meet State specifications.

The maximum legal speed before the power-assistance automatically cuts off is 25 km/h for e-bikes in Victoria.

2.3 Helmets

The wearing of a helmet while riding an e-scooter or bicycle is mandatory under Victorian regulations. Operators must provide a helmet with every e-scooter or bicycle that is available for hire or else the device should not be made available for hire.

2.4 Insurance & Liability

E-scooters and bicycles/e-bikes are generally not covered by the Transport Accident Commission (TAC) unless a crash occurs involving a motor vehicle (regardless of who is at fault or whether the driver or rider is doing something illegal or not). If a vehicle is not involved in a crash with an e-scooter or bicycle/e-bike, TAC coverage generally doesn’t apply (except in some exceptional circumstances for bicycle crashes). ²

Agreements must require operators to hold appropriate insurance coverage for their operations and provide a range of insurance cover for riders and other third party street users. This condition gives riders and the community some protections in the event of an accident, noting that micromobility share scheme accidents may not be covered by TAC compulsory third party insurance.

Appropriate insurance coverage will assist in securing public acceptance for the shared scheme and may also serve to protect council from liability.

In particular, operators are expected to:

• Hold third party insurance to provide coverage to third parties (such as pedestrians) in the event that they are hit and injured by a shared scheme device. Such insurance must apply to third parties even if the rider is in breach of the road rules at the time of the incident (such as not wearing a helmet or riding on a footpath).
• Provide riders with personal injury insurance, to provide protections to riders in the event that a rider has a crash.
• Hold an appropriate level of public liability insurance.

2.5 Parking

Parking of shared scheme devices is one of the most sensitive areas for councils to manage. Poorly parked devices can not only be a source of community discontent, but if not managed in a systematic way, can potentially put a council in breach of their obligations under the Disability Discrimination Act 1992 (DDA) to provide residents with access and freedom of movement. In particular, section 23 of the DDA requires non‑discriminatory access to premises which the public is entitled to use, which includes public footpaths and walkways.

It is therefore imperative that councils work with operators to implement strategies to mitigate the impacts of poor parking to maintain clear access for footpath users and these should be agreed upon through a parking management plan before operations begin.

To meet DDA requirements, parking requirements must specify a minimum standard that shared scheme devices:

• Be parked at least 1.5 metres from the building line.
• Not be parked on footpaths that are less than 1.5 metres in width.
• Not be placed where they could obstruct peak pedestrian flows or otherwise pose a safety hazard.
• Not interfere with pedestrian access or amenity.
• Not be parked on infrastructure which provides warnings or assistance to people with vision impairment (tactiles, guides, steps, rails etc.), or in any other way that endangers others.
• Keep the edge of the road clear to allow access to and from the road, including space to open car doors.
• Not park on landscaped areas or adjacent to disabled car parking bays, or by leaning against structures (including on trees, buildings, poles, street furniture or any structure).
• Not be parked in no-parking zones in sensitive or highly pedestrianised areas.

Councils should work with operators to determine the optimal parking plan for shared scheme devices and appropriate preferred parking zones, exclusion zones, and no parking zones.

More information with regards to best-practice parking management plans is provided in Section 3.2.4: Parking management.

2.6 Device requirements

All share scheme devices must:

• Be equipped with helmets.
• Be readily identifiable as belonging to the operator and not be confused with other schemes or private devices.
• Display contact information for the operator including a phone number.
• Display a unique identification number that is clearly visible from at least 5 metres away from and be fixed to the device.
• Comply with all relevant Victorian legislation and regulations.
• Display basic information on road rules applying to device riders.

2.7 Data privacy

The privacy frameworks that govern micromobility data sharing arrangements mandate that data cannot be individualised for the purposes of reporting. All data provided to councils and third parties must be aggregated and non-identifiable, in accordance with the Privacy and Data Protection Act 2014 (Vic) and/or any other relevant privacy legislation.

Case studies

Melbourne 

For the three metropolitan LGAs which participated in the initial e-scooter trial (the Cities or Melbourne, Yarra and Port Phillip), the resident population is approximately 356,000 (2022, ABS), which would suggest 712 e-scooters being made available. The initial fleets size began at 1,500 but was increased subsequently by agreement between operators and participating councils due to higher-than-expected demand for the vehicles in the service the area: the average number of rides per scooter was 8 rides per day, and on weekends some scooters were being used over 25 times per day. In collaboration with the operators, the councils determined to increase the maximum number of e-scooters made available at any one time to 2,500. This figure recognises that the City of Melbourne, in particular, swells enormously with over 1 million visitors and workers each day. 

Ballarat

Ballarat has a resident population of around 116,000, which, using the formula of 1 scooter per 500 residents, would suggest 232 e-scooters being made available. During the trial 250 e-scooters were made available, which closely aligns to the suggested industry benchmark.

¹ Notable differences for device specifications in Victoria compared with other Australian jurisdictions is that devices with seats, or more (or less) than two wheels, are currently prohibited in Victoria.

² E.g. cyclists are covered by TAC if the rider crashes into a stationary vehicle or if a car door is opened into their path, whereas e-scooter riders are not.