Scoot Over? SF Levies Six-Figure Fine On Scooter Outfit — Company To Halt Local Operations On July 1

By Eleni Balakrishnan, Mission Local

June 28, 2021

Longtime San Francisco fixture Scoot, a scooter and moped rental company, will indefinitely pause operations on July 1. It also faces a six-figure financial penalty for various permit violations after receiving a cease and desist letter from the San Francisco Municipal Transportation Agency last month.

The SFMTA sent an initial letter to Scoot on May 21, stating that Scoot’s use of subcontractors was unauthorized and in violation of its permit. According to the Powered Scooter Share Program permit, companies are allowed to subcontract or delegate operations only with prior approval from the transit agency.

The SFMTA had earlier informed Scoot, on May 10, that three subcontractors it worked with — Puma Couriers LLC, Martin Bros. Inc. and Bay City Bikes — were not approved. But the transit agency received no reply from Scoot, according to the May 21 letter. One day prior, on May 20, the transit agency received confirmation from Scoot that operations were still being conducted by two of the companies.

In a June 25 letter, the SFMTA notified Scoot it was being hit with a $105,600 penalty, mostly made up of $100 per day fines dating back to August 2020. The listed violations included the unauthorized subcontractors, not providing proof of insurance for the subcontractors, and compliance violations like not notifying the SFMTA of charging locations.

Scoot received its initial city permit in October 2019, after being purchased by rival scooter rental company Bird in June 2019. The original Scoot mopeds launched in San Francisco in 2012, and grew to include kick scooters launched in 2018. The company also expanded to Barcelona and Santiago.

Mission Local has not yet received a reply from Scoot.

According to a June 25 statement from the SFMTA, the violations by Scoot were “revelations” that only came to light recently. Of four applicants, only Spin and Lime will receive 2021 permits on July 1, with 2,000 scooters each. Scoot will cease operations in San Francisco indefinitely.

“The SFMTA takes these issues very seriously,” reads the statement, “and will defer a decision on 2021 permit issuance to Scoot to allow time for full investigation and complete its evaluation. Scoot service will pause on July 1st during this time.”

Mission Local covers San Francisco from the vantage point of the Mission, a neighborhood with all of the promise and problems of a major city. You can support Mission Local here.