The Seattle City Council unanimously passed a budget action Monday for new city rules on bike share companies that will expand the number of bikes in operation, increase the fees for bike share operators and put in place new regulations around the parking of the shared bikes.

The Council action also outlines $1 million in spending for administration, adaptive bicycle access, equity programs, a new parking compliance effort and a major expansion of bike parking. These investments will be covered by a major hike in fees for the bike share operators.

We previously expressed concerns that the hike in fees might be too steep, especially for the lowest-priced options such as the pedal bikes that cost just $1 for a ride. Indeed, the lowest-cost operator has announced they are leaving Seattle due to the fee hike. ofo, which offers rides at $1 for an hour (vs $1 for a half hour by the other operators), confirmed to Seattle Bike Blog that they will be leaving Seattle.

“We appreciate the efforts of City Council and SDOT in crafting new requirements for dockless bikeshare in Seattle,” said Seattle General Manager Lina Feng in an emailed statement. “The exorbitant fees that accompany these new regulations—the highest in the country—make it impossible for ofo to operate and effectively serve our riders, and as a result, we will not be seeking a permit to continue operating in Seattle. We’re incredibly disappointed to be leaving the first U.S. city to welcome ofo and thank the City for its partnership and support this last year.”

Lime, on the other hand, says they will apply for the new permit as soon as it is available, and plans to expand its pedal and e-assist bikes. (more…)