Forest, the e-bike operator recently granted a licence by Hounslow Council, has declared a 50% increase in its "pay as you go" service fee to £1.50, attributing the rise to a doubling of the fees London boroughs charge for operational rights.
This announcement of a price rise comes shortly after City AM disclosed that Hounslow Council had awarded Forest a profitable e-bike contract, partly due to its substantially higher financial offer compared to competitors, despite lower scores in other quality assessments, as reported by .
In communication with its users, Forest cited escalating "borough fees" as the justification for the fee increment.
The company's statement to customers clarified: "In order to operate in each borough, we also have to pay a fee to them," and elaborated on the variability and recent increase of these charges, stating, "These fees vary... but one thing that is consistent is that these fees have doubled in the past year."
A patchwork of policies
London's e-bike market is characterised by a "patchwork of policies," a term coined by television host Dara Ó Briain on social media, reflecting the disparate regulations and fees across the city's boroughs.
This disjointed approach has resulted in different e-bike operators being licensed in adjacent boroughs, leading to practical issues for users.
For instance, while Hounslow has issued licences to both Forest and Voi, neighbouring Richmond has opted for Lime as its e-bike provider.
The consequences of this fragmented system are evident, with instances of bikes being left stranded at borough borders or even during trips, as highlighted by a social media user named Matt on X, who shared images of bikes clustered at the boundary between Hounslow and Richmond.
This challenge is "exactly why we have been calling for a pan-London approach to regulation", explained Alex Berwin, head of policy at Forest.
A Voi spokesperson shared this view, confirming they are "working with local leaders and TfL towards a London-wide scheme to make cross-borough journeys simpler".
Even with the tariff rise, Forest maintains its typical 10-minute journey remains £1.40 less expensive than its "main competitor."
The firm is also bringing back a £1 ride option for up to 30 minutes on selected bikes to "keep offering our riders a really affordable way to get across London."
Speaking to CityAM, Alex Berwin, head of policy at Forest, said: "Forest is committed to making Londoners' journeys greener and more affordable. While rising borough fees mean we've had to adjust our daily service charge, we're proud that our service remains significantly cheaper than alternatives."
Commercial interest vs urban mobility
Borough charges have emerged as a key battleground within the e-bike sector.
As CityAM revealed, financially stretched local councils often place the monetary aspect of e-bike tenders above other considerations.
Hounslow's procurement process exemplified this trend, with Forest achieving 45 per cent in the 'quality' element of its proposal but securing full marks of 40 out of 40 in the 'fees' category.
Industry expert Beate Kubitz cautioned that there exists an "inherent temptation for local authorities to look for income."
However, the dependence on these fees has resulted in a market where operators are compelled to hike prices for customers. This creates a conflict between the commercial interests of councils and the objective of offering affordable, sustainable transport.
The hurdles aren't confined to fees. The absence of a unified system has also spawned operational issues, including bikes being discarded on roads.
Transport for London has had to issue 333 Fixed Penalty Notices to both Lime and Forest for e-bikes left irresponsibly on city streets.
Forest has been contacted by CityAM for comment.
