San Francisco might try to stop the electric scooter invasion by placing limits on how many each startup can rent out

Travis VanderZanden

San Francisco is considering a measure that would limit the number of electric scooters available to rent in the city to 500 per company.
It's a response to the venture-backed electric scooter startups, which have become a nuisance for commuters, as the vehicles are left blocking sidewalks or barring entryways.
In response, scooter startup Bird revealed that it has 1,600 scooters in the city, and that 32,000 riders have taken advantage of it in the month since it launched.

San Francisco is considering limiting the number of electric scooters allowed in the city to 500 per company — and at least one scooter company already opposes the measure.

The cap is being considered as a condition for a scooter permit, the San Francisco Municipal Transportation Authority confirmed to Business Insider. That permit would be a prerequisite for allowing startups to offer their pay-as-you-go scooter rental services in the city.

Those scooter startups — namely, Bird, LimeBike, and Spin, which have raised hundreds of millions of dollars in venture capital between them — have become an annoyance for many in San Francisco. The vehicles are "dockless," meaning that when a rider is done with the scooter, they can just leave it anywhere. The result has been that scooters are left blocking sidewalks or strewn across entryways.

The proposed cap would be instated for a two year pilot period, Paul Rose, a spokesman for the SFMTA, said. During that period, the agency will "evaluate" and "develop policy recommendations" for how a shared electric scooter system should work. But it's possible adjustments will be made during the pilot.

These are the first details so far on how San Francisco expects to implement its permitting process. The SFMTA expects that companies will be able to start applying for permits in May.

"Our proposed permitting system and pilot program will allow us to move forward in an optimistic and thoughtful way, ensuring that any permitted companies are prioritizing public safety, equity and accountability," Rose said.

Scooter startups push back

Since three scooter companies currently operate in San Francisco, 1,500 would be allowed at any given time under the proposed limits. Bird, one of the three companies with scooters in the city, has more than 1,600 scooters itself, the company publicly disclosed for the first time on Wednesday in a statement that opposed the proposed measure.

"We think allowing for a dynamic cap that responds to the demand for this type of transportation will give people more sustainable, convenient, and affordable alternatives to driving," Bird spokesman Kenneth Baer told Business Insider. The company added that 32,000 riders have taken advantage of Bird since it launched in San Francisco in March.

bird scooter

Baer added that the company will "look forward to working with the city to craft a solution that continues to satisfy this urgent need for new micro transit and helps San Francisco meet its ambitious goal of reducing the number of cars on the road by 80 percent by 2030."

"We don't disclose specific numbers but we have a couple hundred scooters in San Francisco. We also aren't commenting on the permits until the details are confirmed by the SFMTA," says a spokesperson for Spin. LimeBike did not respond to a request for comment.

The San Francisco city attorney slapped each of the companies with cease and desist letters last week and the city has begun to impound scooters parked improperly. Additionally, activist residents have been vandalizing scooters in an effort to deface them or keep them off the road entirely.

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