Scoot to halt service in S. . indefinitely
As recently as April, the agency allowed Scoot to expand its fleet by 500 scooters. Under the permit agreement, Scoot could subcontract part of its operations “only upon prior written approval of the SFMTA,” according to an April 1 letter from the agency that laid out terms and conditions.
The SFMTA sent Scoot a cease and desist letter May 21 after learning that Scoot had subcontracted with Martin Bros. Inc., Puma Couriers LLC and Bay City Bikes without getting approval from the agency.
The agency told Scoot in a June 25 letter that it was fining the company l105,600 for subcontracting without SFMTA’s approval, not providing the city with proof of insurance for the subcontractors, and for failing to disclose its use of subcontractors in its quarterly reports. According to the letter, Scoot began subcontracting some of its fleet management responsibilities last August without notice or approval.
Scoot did not respond to requests for comment.
In 2019, Scoot was acquired by one of its rivals, Bird, a Santa Monicabased scooter company that just months prior had lost out on winning a coveted permit to operate in San Francisco. Months after Bird’s acquisition of Scoot, the operator laid off Bay Area employees, The Chronicle reported in December 2019.
Electric scooters have exploded in San Francisco in recent years, and the city views them as an alternative to its public transit system, which is slowly restoring service to prepandemic levels. But they’ve also attracted much criticism from residents who say the proliferation of scooters in the city has resulted in blocked sidewalks and dangerous riding with little enforcement from the city.
Lime and Spin’s approved permits allow the companies to each operate fleets of 2,000 electric scooters in the city to start. The two operators can apply with the city every few months to add to their fleets in increments of 500, according to the SFMTA’s announcement.