The City of Hobart is giving Beam 24 hours to show cause as to why their e-scooter licence should not be revoked.
The move follows allegations of under-reporting of active scooters in other cities and calls from councillors to remove the purple e-scooters from the capital’s streets.
Several other councils, including Canberra, Brisbane, Townsville and Auckland, terminated their contracts with Beam due to the allegations.
A spokesperson for the City of Hobart said they only became aware of the allegations through media reporting in late August.
The council has since launched its own investigations into whether Beam has breached any contractual conditions, including the trial period.
“The City has been continuing to liaise with other jurisdictions in Australia and New Zealand as well as with Beam directly,” City of Hobart CEO Michael Stretton said.
“We have issued Beam with a show cause notice. The company will have until close of business, Friday 6th September, to respond.”
Stretton said that if Beam fails to meet its contractual obligations and provide a satisfactory response, the city “will have no hesitation in cancelling its licence”.
“Irrespective of a decision on the licence, the future of e-scooter operations within the city will be considered by the council at its September meeting,” he said.
