End of the road for Lime?

Earlier this month, Yarra City Council announced it was ending a 6-year trial programme for ride share e-bikes, after the incumbent commercial operator, Lime failed to meet the Council’s procurement requirements.

Despite this, Lime continues to operate elsewhere in the State of Victoria (City of Melbourne and the City of Port Phillip), and in other local government areas in Australia (Sydney, Brisbane, Canberra).

Some of the reasoning behind Yarra Council’s decision appears to echo safety concerns and public complaints regarding Lime in other cities around the world, such as London.

These issues include:

  • Riding on footpaths and in pedestrian-only zones
  • Inappropriate “parking” of ride-share vehicles
  • Joy-riding
  • Speeding
  • Tandem riding
  • Riding without helmets (a requirement in Australia)

In the case of Yarra Council, the original 1-year pilot programme had been extended or renewed unchanged since 2020. According to the Council’s website announcement and FAQs, Yarra did not receive any operating fees, and did not have the certainty and enforceability a commercial contract would have provided.

The biggest obstacle in Yarra appears to be Lime’s refusal or inability to take more responsibility for tracking and retrieving abandoned and illegally parked vehicles – which meant the Council has been picking up the cost.

If this is true, then it appears to be incredibly short-sighted behaviour on the part of Lime – and perhaps reveals a degree of obstinacy bordering on arrogance that comes with incumbency (and a degree of ubiquity).

I can’t believe that Lime cannot do a better job of tracking and retrieving its assets – if I was a shareholder, I would be concerned about this lack of financial management and poor corporate governance. If we can track our suitcases around the world with a simple e-tag, surely Lime knows where all its bikes are located at any given time, and identify which vehicles are illegally parked?

Likewise, Lime should be able to do a better job of immobilising vehicles so they cannot be used for joy-riding, or by under-age riders?

I’m sure we have all seen the social media posts of Lime bikes strewn across footpaths, dumped in waterways, or “parked” on bus shelters. Anecdotally, I’ve also seen ride share vehicles lined up outside my local pub – I get that we don’t want people to drink and drive, but should operators be implicitly encouraging intoxicated pub patrons to use their e-bikes and e-scooters instead?

I have also seen branded ride share helmets littered all over the place – I’ve even had them chucked in my garden. Most of these discarded helmets end up in landfill (as confirmed by one council street cleaner I spoke to in Melbourne’s CBD) because once they are damaged, they can’t be used again. (This also points to a lack of asset management and poor financial governance by the operators.)

There have also been increased incidents of accidents and serious injuries involving e-bikes and e-scooters. I’m not suggesting these are only caused by ride share vehicles, but there is no doubt an element of “don’t own, don’t care” when people use these short-term rental bikes. It would be illuminating to measure the percentage of accidents involving ride share vehicles (and food delivery drivers), as compared to privately-owned e-bikes and e-scooters.

I’d be interested to see more data on programme objectives, and whether or not those goals are being met. For example, a common argument in favour of the local ride share schemes is they help to reduce the number of cars on our roads – but again, anecdotally, where I live in the City of Yarra, I’ve not seen any reduction in car traffic in recent years. Other stated benefits are increased local mobility (easier to take short trips from A to B) – but Yarra is well-served by public transport (trains, trams and buses), and no-one is that far from a tram stop or train station. Another aim might be improved public health (less people using their cars) – but if these schemes result in more trips to A&E (and worse), surely that outweighs any perceived benefit?

Going forward, maybe we will see more local authorities take a similar stance to Yarra Council, or at least tighten up the operating licenses granted to ride share providers, and do more to weigh up the pros and cons of such schemes.

Next week: No More Songs

 

Unintended Consequences?

Last month, Melbourne City Council banned e-scooters for hire. The City’s Lord Mayor argues that the current trial needs to be re-set, as a result of increased traffic violations and personal injuries. So far, similar trials running in other local government areas adjacent to the City will continue, but they will no doubt be seeking to ensure the hire schemes are implemented and managed in a responsible, compliant and sustainable fashion, when the trials expire.

Despite the promised (and welcome) benefits of e-scooter hire schemes, I have yet to see current data that would support their continued operation. E.g., has the introduction of e-scooters reduced either the overall number of cars on the road, or the number of short car journeys under 2km?

I can see that e-scooters are probably popular with shift workers, largely because public transport services do not run at the times these commuters need them or where they need to go.

As well as living close to the City, I live in an adjacent LGA that is running a similar trial, so I have plenty of anecdotal evidence of the downside.

It’s not just users riding on pavements and in pedestrian-only areas with little care for those on foot. Many riders are carrying passengers (unlawfully) and choosing not to wear helmets (also unlawful). There appear to be a large number of joy riders, who often leave vehicles strewn across footpaths, rather than parking them responsibly. Then there are the helmets discarded without care or thought. Many of which probably end up in landfill, especially if they have been cracked or damaged through misuse. (A few months ago, I spoke to a Melbourne City Council street cleaner, and he admitted that if helmets are discarded like litter, they go into the general waste collection.)

I also see e-scooters for hire being lined up by their operators outside pubs and bars. I get that we don’t want people to drink and drive, but riding an e-scooter while drunk is hardly the answer!

I suspect that the obvious problems and misuse could have easily been anticipated, and even mitigated. Here are just a few suggestions:

1. Require all ride-share customers to have appropriate insurance. This could be done via the operator apps, and/or via a subscription model.

2. E-tag all helmets as well as the scooters themselves, so operators can keep track of their property. If I was an investor in these companies, I’d be concerned that they aren’t protecting their assets!

3. Require users to pass some sort of proficiency test – including basic road rules, and traffic regulations.

4. As well as limiting the vehicle speed, disable any e-scooter that is being driven on pedestrian-only footpaths or other “out of bounds” areas. The City of Melbourne and surrounding LGAs now have extensive cycle lanes, so there shouldn’t be any excuse for riding on pavements.

5. Consider attaching breathalysers to each scooter and applying weight limits on vehicles (to counter the problem of passenger over-loading).

Finally, the use of contributory negligence in assessing potential damages should be a default position. Indeed, any rider who causes an accident, injures a pedestrian or damages another vehicle or property, directly or indirectly as a result of the rider’s misuse or negligence should result in strict liability for all damages.

Next week: Ticket scalpers? Blockchain could fix that!

 

Is it OK to take selfies in the gym?

Time to discuss personal boundaries when it comes to taking or sharing photos and video.

First, whatever the circumstances, it is usually respectful (and even a legal obligation) to ask a person’s consent before sharing a photo or video of them. And of course, you should only share content that you own, unless you have permission from the copyright holder.

Second, the sharing of third party content pay be permissible (depending on the situation) if it’s covered by established copyright law (e.g., fair use, public domain, creative commons, open source) or other legal principle (e.g., public interest).

Third, there are also legal principles about taking photos of private property from a public place, which largely build on privacy and data protection laws. (See my previous blog on this topic)

But in a selfie-driven and smartphone-obsessed world, I see too many examples of people snapping and sharing photos without a concern in the world (either for themselves or for others).

The gym I attend is a private club. All members and guests must abide by the terms and conditions of entry, otherwise they can be asked to leave (and their membership cancelled).

One of those conditions states that gym users must not film or take photos without the express prior consent of the gym management.

Some users may argue, “it’s only a selfie of me flexing” or “I’m only filming my buddy lifting weights”. But gym walls are usually mirrored, so there is no guarantee that your video or photo won’t inadvertently capture someone’s image without their knowledge or permission, and if you then share it on social media that is a potential breach of privacy.

(I have similar issues when people make audio and video calls, listen to music or watch videos on their smart phones in public places, without wearing earphones – I don’t want to listen to your crap!)

Going to the gym is an important part of my physical and mental well-being. I expect it to be a safe environment, and a small respite from the intrusions of the outside world.

Respect the space and the people who use it!

Next week: Perfect Days – and the Analogue Life

Dud Housing*

Recent media commentary suggests we have a housing crisis in Australia – ranging from affordability and supply, to quality and location, as reported here. Renters are being priced out of the market, ageing stock means houses that are too cold in winter or too hot in summer, and there aren’t enough homes to rent where people want to live. I suspect that all of these factors have been in place for several years, but the knock-on effects from the Covid pandemic have exacerbated these trends.

“House” (1993) © Rachel Whiteread. Photo © Rory Manchee

For background, I should explain that at the start of my career, I worked as a housing officer and paralegal in the UK. I worked for three different local councils in inner London, advising tenants, leaseholders and landlords on their respective rights and obligations – and where there were infringements, preparing prosecutions against landlords and their agents. I dealt with people facing harassment, unlawful eviction, homelessness and housing disrepair. Mostly, my work involved advising the parties of their legal position and available remedies, often I helped them reach an amicable solution, and occasionally I had to take enforcement action with the support of the council’s legal powers. The latter included injunctions against the threat of unlawful eviction, the issuance of proper rent records, repair notices, rehousing directives, and even compulsory purchase orders.

It was stressful, and at times confrontational, work – after 5 years, I was pretty burned out, and decided to make a career change. At the time, London (and the UK) was experiencing a huge amount of change that impacted both the public and private rental sectors. First, the Conservative government under Margaret Thatcher had introduced “right to buy” legislation, meaning public housing tenants could apply to buy the homes they lived in. Second, the government also introduced “mortgage interest relief at source” (MIRAS) which meant home buyers received tax relief on their interest payments. Third, central London in particular was going through a period of gentrification, with public money made available to property owners to improve and upgrade period homes. As a result, Georgian and Victorian houses that had been sub-divided into apartments (mainly occupied by long-term tenants) were restored to single family homes. Added to that, one of the council’s I worked for had been engaged in a “homes for votes” scandal, a “policy” to (re-)engineer the local demographics.

In the past, I’ve been both a tenant and a landlord, so I’ve also experienced some of these issues for myself. As a tenant, I’ve had landlords who denied that their properties were poorly wired or had defective plumbing (despite formal notifications from the council), and denied all requests to have the defects fixed. As a landlord, I’ve had tenants sub-letting to their “friends”, and who assured me that these “friends” could pay the rent.

So what is going on in parts of Australia, that there is such a misalignment between where tenants want to live, and vacant housing stock?

First, to touch on property ownership. Home owners don’t receive anything like the former MIRAS scheme in the UK, but there are various financial incentives for first-time buyers (such as zero stamp duty when buying a property off the plan), and during the Covid pandemic, some first-time buyers could access their superannuation (pension) fund to help with the deposit or down-payment. Property investors can take advantage of negative gearing to offset mortgage interest payments and costs of repairs against their income tax. These factors are generally considered to push up house prices – and despite recent interest rate rises, the cost of borrowing has remained at historic lows for more than a decade. Housing inflation means aspiring buyers are priced out of the market (especially as wages have not kept pace with inflation, let alone the rise in property prices). And landlords are now seeking to increase rents to offset rising interest rates.

Second, I’ve never really understood why some landlords don’t maintain their properties to an adequate standard – it surely detracts from the value of their assets, as well as deterring potential tenants. And when there may be improvement funds available (e.g., insulation grants, solar rebates) why wouldn’t they take advantage? On the reverse, should tenants have more powers to undertake essential repairs and improvements, and withhold rent to cover the costs? (Equally, I find it surprising that some tenants don’t feel it is their responsibility to undertake minor maintenance or running repairs, such as mowing the grass, clearing gutters or replacing cracked window panes.)

Third, it’s an economic imperative to have a supply of housing stock in the rental market. It helps people who prefer to rent rather then buy, it allows for workforce mobility, and it supports seasonal demand in industries like agriculture. I don’t believe that all rental stock should be held and managed in the public sector – it represents a huge obligation (not just an asset) on government balance sheets, tying up capital and incurring huge running costs. We need a component of public housing, but otherwise leave it to the private sector, with appropriate safeguards.

Fourth, why the apparent mismatch between supply and demand? On one level, developers are building the wrong types of properties and/or building in the wrong locations. Inner city areas have seen a massive growth in high-rise apartments over the past 20 years, supposedly in response to increased housing demand. In theory, these projects generate more yield for developers, although the apparent over-supply leads to depressed rents, and some banks won’t lend against these properties due to uncertain re-sale value and over-capitalised assets.

In the suburbs, archetypal quarter acre blocks have been sub-divided to cram in more town houses and units, or developers are building bigger houses (McMansions) on smaller plots, leaving minimal gardens and no breathing space between properties, as they build right up to the boundary lines. Many new suburban developments lack proper infrastructure and services (public transport, schools, shops, clinics), making them less attractive to renters – while the owners expect higher rents to cover the cost of their mortgages. Plus, many new properties have been built “on the cheap”, using inferior materials and design – hence the issues with heating/cooling. On the other hand, ageing stock, especially weatherboard and brick veneer structures, can also be hard to heat/cool. Many houses (new and old) lack double-glazing, for example, which would go a long way to resolving this energy conundrum.

Meanwhile, the recent lock downs in Melbourne (and to a lesser extent, Sydney) have meant many urbanites have moved to regional locations, putting upward pressure on property values and rents, pricing out locals who already live and work there. Of course, another reason for the mismatch in supply and demand is the growth in short-term lets, mainly for holiday-makers – such that local stock is taken out of the regular rental market. However, a lot of the Airbnb accommodation I have used over the years would never have been available on the rental market, because they were pre-existing holiday lets, or they are principal homes, where the owners are temporarily working abroad or interstate. And this type of flexible accommodation is also in demand by a mobile workforce that can, and prefers to, work from anywhere (so-called digital nomads).

None of which explains or resolves the current crisis. If governments want to address the bigger issues, they need to consider a range of solutions: updating building standards, upgrading land-use rezoning and planning regulations, encouraging a greater variety of housing development and management (soclal housing, shared ownership, property exchanges, rent holidays in return for repairs and improvements), and the use of modular/portable homes to meet fluctuating demand. All of which requires vision, and most party political objectives are driven by short term goals and the next election cycle.

* Apologies to Pere Ubu for (mis-)appropriating the title of their second album

Next week: Picasso and his circle