Forest hikes e-bike prices amid fragmented London market
Forest, the e-bike operator recently licensed by Hounslow Council, has announced it is raising its “pay as you go” service fee by 50 per cent to £1.50, citing a doubling of the fees charged by London boroughs to operate.
The price hike comes just weeks after Morning Wire revealed that Hounslow Council awarded a lucrative e-bike contract to Forest partly because it offered a significantly higher financial bid than its rivals, despite scoring lower on other quality metrics.
In a letter to customers, Forest explained that rising “borough fees” are the reason for the increase.
“In order to operate in each borough, we also have to pay a fee to them,” the company said. “These fees vary… but one thing that is consistent is that these fees have doubled in the past year.”
A patchwork of policies
The move highlights the complexities of London’s fragmented e-bike market, where each borough operates with its own set of rules and fees.
This “patchwork of boundaries,” as TV presenter Dara Ó Briain described it on social media, has created a situation where different e-bike providers are licensed in neighbouring boroughs.
For example, Hounslow has granted licenses to Forest and Voi, while adjacent Richmond has licensed rival firm Lime.
This has led to bikes being “abandoned at borough boundaries or worse mid journey & cannot be unlocked”, according to a post on X by a user named Matt, whose photos show clusters of bikes at the border between Hounslow and Richmond.
The issue is “exactly why we have been calling for a pan-London approach to regulation”, said Alex Berwin, head of policy at Forest.
A Voi spokesperson echoed this sentiment, stating they are “working with local leaders and TfL towards a London-wide scheme to make cross-borough journeys simpler”.
Despite the price increase, Forest claims its average 10 minute ride is still £1.40 cheaper than its “main competitor.”
The company is also reintroducing a £1 ride option for up to 30 minutes on certain bikes to “keep offering our riders a really affordable way to get across London.”
Alex Berwin, head of policy at Forest, told CityAM: “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
The issue of borough fees has become a central point of contention within the e-bike industry.
As revealed by Morning Wire, the financial component of e-bike contracts is often prioritised by cash-strapped local authorities.
In Hounslow’s case, while Forest scored 45 out of 60 on the ‘quality’ section of its bid, it achieved a perfect score of 40 out of 40 in the ‘fees’ section.
Industry analyst Beate Kubitz warned that there is an “inherent temptation for local authorities to look for income.”
However, the reliance on these fees has led to a market where operators are forced to increase prices for customers, creating a tension between the commercial interests of councils and the goal of providing affordable, sustainable transport.
The challenges are not limited to fees. The lack of a unified system has also created operational problems, including bikes being abandoned on roads.
Transport for London has been forced to issue 333 Fixed Penalty Notices to both Lime and Forest for e-bikes left inappropriately on city streets.
Forest has been approached by CityAM for comment.