Requirement to have an agreement with local council
Shared hire operators of e-scooters, bicycles and e-bikes must have an agreement with the relevant local council to operate in that area. Operating without such an agreement is illegal and may result in significant penalties.
The Department of Transport and Planning (DTP) has developed a best practice guide for councils to assist them with managing micromobility share schemes, including parking management and operator insurance requirements.
DTP has also drafted a sample template for an e-scooter shared hire agreement which councils can use to guide their planning. The purpose of the sample agreement is to provide a template set of terms that councils can build on to manage and administer an e-scooter shared hire scheme with an operator. Many of the elements will also be applicable to bicycle or e-bike shared hire schemes.
Requirement for shared hire e-scooter operators to be approved by the Department of Transport and Planning
The Victorian Government requires all shared hire e-scooter operators to gain approval by the DTP to operate in Victoria.
The requirement for e-scooter shared hire scheme operators to be approved provides a number of benefits to the community, including:
- Increasing safety for riders, pedestrians and other road users.
- Enhancing the management of e-scooter shared hire schemes.
- Assisting local councils in establishing an e-scooter shared hire schemes by assisting in the regulation and selection of operators.
To gain approval to operate in Victoria, shared hire e-scooter operators must submit an application to DTP demonstrating that they meet all standards set by the Transport (Compliance and Miscellaneous) Act 1983 (the Act) and the Transport (Compliance and Miscellaneous) (Vehicle Sharing Schemes) Regulations 2026 (the Regulations) - provided in summary below.
To obtain an application form or to seek further information about applying, please email sharedhire@transport.vic.gov.au.
Once an application is received DTP has up to 60 days to make a decision.
To be approved to provide e-scooter shared hire services in Victoria, shared hire operators will have to meet the following minimum requirements.
Fit and proper person test
DTP must be satisfied that the applicant is a fit and proper person, suitable to operate a shared hire e-scooter service. This includes both capability as well as conduct history in relation to compliance with regulatory requirements and agreements with government, such that the applicant can be trusted to perform the functions and responsibilities contemplated by the Act and the Regulations.
Insurance
Operators hold a range of insurance policies (such as rider insurance and public liability insurance). Liability insurance cover limits must be no less than:
- $20 million for public liability insurance
- $1 million per claim for rider third-party liability insurance which is applicable even if the rider is in breach of the road rules or conditions of hire at the time of the incident, except if the rider is aged under 16 years.
Operational capabilities
Footpath detection
Devices in metropolitan Melbourne councils must be fitted with the capability to detect, in real-time, when a device is being ridden on a footpath. Operators must be able to do the following if the vehicle is detected to be on a footpath—
- play an audio alert;
- slow the vehicle;
- stop the vehicle.
Parking management
Operators must have technology and processes in place to review parking at the end of each trip to assist users to park devices correctly (in accordance with the conditions of hire), and must have sanctions for non-compliance under their hire agreements with users.
Operators must also be able to restrict riders from ending a trip outside any designated parking areas provided by a participating council.
Devices deployed in metropolitan Melbourne must also be capable of providing high accuracy parking verification technology (for example, receiving signals from proximity beacons using technologies such as Bluetooth). Devices must be capable of being prevented from ending a trip until the verification system detects the e-scooter.
Geofencing and zone management
Operators must use geofencing to detect the device location and implement location-based actions or restrictions if the rider ventures outside the legal hire area, specifically by (gradually and in succession): playing an audio alert, slowing the device, stopping the device and preventing users from ending their hire.
Operators must also be able to implement zone and/or location-based alerts, actions or restrictions such as no-go or go-slow zones.
Helmet availability
Devices must be able to detect that a helmet is attached to the device. Devices without a helmet detected must not be made available for hire.
Helmet use verification
Operators are required to inform riders that they are legally required to wear a helmet and to verify that riders have unlocked the helmet from the helmet lock, or otherwise verify the user is wearing their own helmet before starting a trip.
Please note that by 18 August 2027 DTP intends to strengthen the helmet use verification requirement to require operators to verify that a helmet has been worn before allowing the device to be ridden.
Cognitive reaction testing
It is a requirement to include a cognitive reaction test for any person who is attempting to hire a device between –
- 8pm and 5am on weekdays; and
- 3pm and 5am on Saturdays and Sundays.
The test must be provided on a software application that:
- prevents the person from hiring the vehicle unless the person passes the cognitive reaction test; and
- provides the person with the following information if the person fails the cognitive reaction test for the first time—
- that the person should not ride the vehicle while under the influence of alcohol or any other drug;
- that the person may make one more attempt to pass the test after 60 seconds;
- that failure to pass the test on the second attempt will result in the person being locked out of the software application; and
- locks the person out of the software application for a period of at least 4 hours if the person fails the cognitive reaction test for the second time.
Information prompts to deter drug or alcohol affected riding
Software will need to inform users that it is illegal to ride under the influence of alcohol or drugs and if caught will result in the loss of their licence, fines, a requirement to complete a behaviour change program, the imposition of an interlock device on their car and to have zero concentration of alcohol present in the person’s blood while driving or being in charge of a motor vehicle for a period of at least 3 years.
It must also prevent the user from hiring the device until the user has confirmed they have read and understood the information and are fit to ride.
Messaging shall be displayed in the following instances:
- Between 8pm and 5am on weekdays; and
- Between 3pm and 5am on Saturdays and Sundays.
- On a new user’s first and second trip
- If the user has not had the message displayed for more than 13 days.
Maintenance plan
Operators must provide DTP with a plan on how devices will be inspected and serviced, including how operational capabilities and device requirements will be maintained.
Device requirements
All shared hire devices must comply with all relevant Victorian legislation and regulations regarding e-scooters.
In addition, the requirement for approval requires that shared hire e-scooters:
- Have a maximum speed capability of 20 km/h under power.
- Be compliant with at least one of the following standards:
- AS/NZS 60335.2.114
- EN 17128
- UL 2272; or
- UL 2271.
- Have at least one effective brake.
- Have a bell, horn or similar warning device in working order.
- Have flashing or steady front (white) and rear (red) lights which are visible for at least 200 metres that are permanently on or which automatically activate in low light, as well as a rear reflector.
- Be equipped with a helmet that meets approved bicycle helmet standards.
- Be equipped with a helmet lock that can detect when a helmet is (and isn’t) attached to the scooter.
- Be able to stand upright on its own (e.g. with a kickstand).
- Be fitted with GPS
- Be readily identifiable as belonging to the operator (e.g. identifiable from a distance and not be confused with other schemes or private e-scooters).
- Display a unique identification number that is clearly visible from at least 5 metres away and be fixed to the e-scooter
- Display contact information for the operator, including a telephone number.
- Have fallen-device (topple) detection and alert system to notify operator.
- Be able to play audio warnings or give other instructions to riders.
- Have stickers/decals displaying key riding rules, including –
- Riders must wear helmets
- No footpath riding
- No carrying passengers
- Don’t drink and ride.
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