E-Scooter Startups Are Quietly Changing Their Equity Programs in LA

Maylin Tu
Maylin Tu is a freelance writer who lives in L.A. She writes about scooters, bikes and micro-mobility. Find her hovering by the cheese at your next local tech mixer.
E-Scooter Startups Are Quietly Changing Their Equity Programs in LA
Photo by Maylin Tu

When Lime launched in Los Angeles in 2018, the company offered five free rides per day to low-income riders, so long as they were under 30 minutes each.

But in early May, that changed. Rides under 30 minutes now cost low-income Angelenos a flat rate of $1.25. As for the five free rides per day, that program ended December 2021 and was replaced by a rate of $0.50 fee to unlock e-scooters, plus $0.07 per minute (and tax).

Lime isn’t alone. Lyft and Spin have changed the terms of their city-mandated low-income programs. Community advocates say they were left largely unaware.


A Lime spokesperson said that with its updated rate, low-income riders will still get an average discount of almost 90% off its service. He added that the startup's rates in Los Angeles are on average 50% less expensive than in most cities

“We would also like to note that L.A. riders have already saved an estimated $1 million via our Lime Access program, and we expect that figure to keep growing steadily with the new pricing in place,” said the spokesperson, who added that 2,800 low-income Angelenos have taken around 250,000 trips since the program rolled out.

Spin once provided low-income Angelenos with unlimited, free 30-minute rides. Now the company is capping the free rides to five per day. Spin did not immediately return a request for comment.

Similarly, Lyft riders were once able to get a monthly pass for $5 and pay $0.05 per minute per ride. Instead, they’ll now need to pay $0.50 to unlock the e-scooter and an additional $0.15 per minute. (There is no longer a $5 monthly charge).

The costs could add up for a demographic that is more likely than the average rider, according to data from rival micromobility startup Wheels, to use e-scooters to get to and from work.

“Lyft is now offering our Community Pass without a monthly payment to make it even easier for more riders to save,” James Boshers, Lyft associate general manager for Southern California, said in an email. Several hundred riders use the program in L.A., according to a spokesperson.

The changes were rolled out with little fanfare, but that might be a moot point. Few of the local transportation advocates dot.LA reached out to were even aware the equity programs existed.

“I mean, I'm not surprised. I think people love giving discounts as a way of showing equity, but there's got to be more,” said Oscar Zarate, assistant director of organizing for SAJE.

A spokesperson for Lime said they have tried unsuccessfully to reach representatives at the organization.

The city of Los Angeles doesn’t promote micromobility equity programs to potential riders; that responsibility falls wholly on companies.

“Revenue generated through the micro-mobility program is dedicated solely to enforcing the conditions of the permit,” LADOT spokesperson Colin Sweeney said by email, “which includes ensuring companies partner with community-based organizations and market their services to low-income residents among other critical safety and consumer protection functions.”

But earlier this year, Sweeney acknowledged that getting micromobility companies to even put their vehicles in low-income communities has been difficult. At first, the city offered incentives to operators, but that proved ineffective.

“As a result, our permanent micromobility program which was established last year REQUIRES operators to deploy a certain percentage of vehicles to specific neighborhoods as a condition of their permit,” he said

A Lime e-scooter parked in West Adams.A Lime e-scooter parked in West Adams.Photo by Maylin Tu

Little Outreach, But More Scooters

Despite those requirements, some community advocates say that companies are not doing enough to reach out to communities to remove barriers to access.

Yolanda Davis-Overstreet serves as vice president of the West Adams Neighborhood Council and chairs its public safety committee. To her knowledge, no micromobility company operating in West Adams has reached out to the group.

She does, however, plan to reach out to them.

West Adams, a predominantly Black and Latino neighborhood, has experienced high rates of traffic violence. One stretch of Adams Blvd between Fairfax Ave and Crenshaw Blvd saw 59 severe and fatal collisions between 2009 and 2019, according to the L.A. Department of Transportation. Last year, the department completed a number of safety and infrastructure improvements along Adams, adding two miles of new bike lanes that make it safer for e-scooters, bikes and pedestrians.

Davis-Overstreet said she’s starting to see more shared e-scooters in her neighborhood.

“It's a privilege that these scooter companies seem to have, like ‘I don't care about your space. I'm here now’,” she said. ”No, if you're going to be here, you need to be here in a respectful way.”

Yolanda Davis-Overstreet chairs the West Adams Neighborhood Council's public safety committee.

Image courtesy of Yolanda Davis-Overstreet

It’s not that she’s opposed to e-scooters, Davis-Overstreet said, but as e-scooter companies ramp up in the community, so do concerns about safety and accessibility.

She said she wants companies to figure out how to respectfully integrate into a community that is already pursuing alternative forms of transportation.

“That's another reason scooters should be connected with [our] community … How are we going to get people in the United States — in particular in L.A. — in the conversation of climate change, if we don't give them access to other tools to use other than cars?”

Alternative forms of transportation like e-scooters have the potential to make a big impact on underserved residents, especially as gas prices surge.

Eli Akira Kaufman, executive director of the Los Angeles County Bike Coalition, a Lime partner, said that Lime has been a valuable collaborator in L.A. on initiatives like First Ride Academy and Lime Hero. But he would like to see companies do more for underserved communities, like advocating for better biking infrastructure and sponsoring workforce development programs.

“Lime Access and these different accessibility programs are great. We totally applaud their intent. But what more can be done to serve our most vulnerable commuters?”

Others cited the requirement that low-income customers fill out an online form and provide proof of income to access discounted rides.

“I don't know if a señora is going to be able to do that,” said SAJE’s Zarate. “And I think people really underestimate how difficult it is to fill out these applications, provide all this documentation— and there's a stigma, ‘Oh, you're applying for these low-income things’ that also discourages people from applying.”

Zarate added that Los Angeles transportation advocates want to start a dialogue—not a fight—with e-scooter companies like Lime, Bird and Lyft.

“Working class communities have always been multidimensional in terms of their transit and how they get around. People bike all around, you feel me?,” he said. “So, I think there's a strong tradition in the community. It's just about finding ways that work for everyone.”

‘Do Your Homework’

Currently, there are six dockless e-scooter and e-bike operators in Los Angeles: Bird, Lime, Spin, Superpedestrian (LINK), Wheels and Lyft. Each runs a separate low-income program with rates varying widely. The same 30-minute ride might cost $0 (Spin, LINK) to $7.85 (Bird) plus tax, depending on the company.

The L.A. Department of Transportation requires micromobility operators to:

  • Deploy 20% of their total fleet in equity zones if they operate in certain more lucrative parts of the city like Venice, Hollywood and Downtown L.A.
  • Offer a cash option for unbanked customers without a credit or debit card.
  • Offer a non-smartphone option to unlock vehicles.
  • Offer discounted rates for customers with an income level at or below 200% of the federal poverty guidelines.
  • Attend meetings with community stakeholders such as neighborhood councils and disability rights organizations.
  • Partner with a community-based organization.

Here’s a run down of costs and information for each low-income program operating in the city of Los Angeles.

Wheels: Wheels for All

$1.10 flat rate for 30 minutes

Lime: Lime Access

$1.25 flat rate for 30 minutes

Bird: Community pricing

50% off plus tax

Superpedestrian/ LINK: LINK-Up

Unlimited free 30 minute rides

Spin: Spin Access

Five free 30 minute rides per day

Lyft: Lyft Community Pass

$0.50 to unlock and $0.15 per minute

Are you enrolled in Lime Access, Lyft Community Pass or Spin Access and have the recent changes affected you? Let us know!

This article has been updated to include information from Lime about their efforts to engage with L.A. community groups.

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Tinder is altering dating profile creation with its new AI-powered Photo Selector feature, designed to help users choose their most appealing dating profile pictures. This innovative tool employs facial recognition technology to curate a set of up to 10 photos from the user's device, streamlining the often time-consuming process of profile setup. To use the feature, users simply take a selfie within the Tinder app and grant access to their camera roll. The AI then analyzes the photos based on factors like lighting and composition, drawing from Tinder's research on what makes an effective profile picture.

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In wholly unrelated news, Elon Musk has announced plans to relocate the headquarters of X (formerly Twitter) and SpaceX from California to Texas. SpaceX will move from Hawthorne to Starbase, while X will shift from San Francisco to Austin. Musk cited concerns about aggressive drug users near X's current headquarters and a new California law regarding gender identity notification in schools as reasons for the move. This decision follows Musk's previous relocation of Tesla's headquarters to Texas in 2021.

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Los Angeles, has a thriving startup ecosystem with numerous accelerators, incubators, and programs designed to support and nurture new businesses. These programs provide a range of services, including funding, mentorship, workspace, networking opportunities, and strategic guidance to help entrepreneurs develop their ideas and scale their companies.


Techstars Los Angeles

Techstars is a global outfit with a chapter in Los Angeles that opened in 2017. It prioritizes local companies but will fund some firms based outside of LA.

Location: Culver City

Type of Funding: Pre-seed, early stage

Focus: Industry Agnostic

Notable Past Companies: StokedPlastic, Zeno Power


Grid110

Grid110 offers no-cost, no-equity programs for entrepreneurs in Los Angeles, including a 12-week Residency accelerator for early-stage startups, an Idea to Launch Bootcamp for pre-launch entrepreneurs, and specialized programs like the PledgeLA Founders Fund and Friends & Family program, all aimed at providing essential skills, resources, and support to help founders develop and grow their businesses.

Location: DTLA

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Idealab

Idealab is a renowned startup studio and incubator based in Pasadena, California. Founded in 1996 by entrepreneur Bill Gross, Idealab has a long history of nurturing innovative technology companies, with over 150 startups launched and 45 successful IPOs and acquisitions, including notable successes like Coinbase and Tenor.

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Cedars-Sinai Accelerator

The Cedars-Sinai Accelerator is a three-month program based in Los Angeles that provides healthcare startups with $100,000 in funding, mentorship from over 300 leading clinicians and executives, and access to Cedars-Sinai's clinical expertise and resources. The program aims to transform healthcare quality, efficiency, and care delivery by helping entrepreneurs bring their innovative technology products to market, offering participants dedicated office space, exposure to a broad network of healthcare entrepreneurs and investors, and the opportunity to pitch their companies at a Demo Day.

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MedTech Innovator

MedTech Innovator is the world's largest accelerator for medical technology companies, based in Los Angeles, offering a four-month program that provides selected startups with unparalleled access to industry leaders, investors, and resources without taking equity. The accelerator culminates in showcase events and competitions where participating companies can win substantial non-dilutive funding, with the program having a strong track record of helping startups secure FDA approvals and significant follow-on funding.

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KidsX

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Disney Accelerator

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Techstars Space Accelerator

Techstars Space Accelerator is a startup accelerator program focused on advancing the next generation of space technology companies. The three-month mentorship-driven program brings together founders from across the globe to work on big ideas in aerospace, including rapid launch services, precision-based imaging, operating systems for complex robotics, in-space servicing, and thermal protection.

Location: Los Angeles

Type of Funding: Growth stage

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🚁 One Step Closer to Air Taxis in LA
Image Source: Joby Aviation

🔦 Spotlight

Joby Aviation, a pioneering electric air taxi company, has achieved a significant milestone by successfully flying a hydrogen-electric aircraft demonstrator for 523 miles with only water as a byproduct. This groundbreaking flight showcases the potential for emissions-free regional travel using vertical take-off and landing (eVTOL) aircraft, eliminating the need for traditional runways. The company's innovative approach combines its existing battery-electric air taxi technology with hydrogen fuel cells, paving the way for longer-range, environmentally friendly air travel.

For LA residents, this development holds exciting implications for future transportation options. Joby's technology could potentially enable direct flights from LA to destinations like San Francisco or San Diego without the need to visit conventional airports, offering a cleaner and more convenient alternative to current travel methods. The company's progress in both battery-electric and hydrogen-electric aircraft positions it at the forefront of next-generation aviation, promising to revolutionize urban and regional mobility.

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