E-Scooter company Grin has decided to pause operations in Mexico City. The announcement comes shortly after the company paid for permission to have its scooters in the city.
Grin’s problem in the city is not the regulations or the lack of interest by the population. It is over the thefts that have brought losses to the company. The company posted a statement on Twitter, explaining why it made the decision.
Part of the statement mentions that while it may seem like a contradiction or something crazy to pause the operations after paying for permission, that is not the case. The statement adds that the company will be making adjustments and coming up with ways to work with authorities to prevent the theft of scooters.
The statement explains that theft remains the biggest challenge for the company. It finishes by saying that they will soon be back and that rents on the day of the return will be on the company.
Grin was the only scooter company that paid to have its scooters in the city. The announcement means that Mexico City will be without any scooters starting on July 30.
Bike sharing companies are also involved in a legal battle that has only left a few companies operating in the city. According to reports, there is an estimated 2,400 bikes operating in the city. The bikes currently available are from two companies that paid to have permission to operate in Mexico City.
The announcement from Grin is a bit of a surprise due to the fact that the company paid money to remain in the city. But the decision appears to be a temporary one. Grin did not say when it plans to return to the city.
Other scooter and bike sharing companies around the world have had similar problems. In recent years, these companies have decided to leave cities or simply pause operations to come up with ways to reduce thefts and work with authorities.
One of the many companies that have been forced to leave cities are Gobee.bike and Mobike. Gobee.bike ceased operations last year but before that, it decided to leave parts of Europe over thefts. One of the countries was France, where the company said it decided to leave over mass destruction of its dockless bikes. The company was offering a service in which users could leave the bike anywhere. But it turned out to be a problem in some places since it led to vandalism and theft.
Last year, Mobike said it was thinking about leaving Manchester. A few weeks later, Manchester became the first city in the world to lose the bike sharing service over vandalism. In April, the company decided to suspend operations in Newcastle and Gateshead. The company did not give details on its suspension of operations but reports had pointed out many cases of vandalism and theft in the areas.
Mobike has also had some problems during its time in Mexico City. The company launched in the country last year but one of its biggest challenges early on was said to be the theft of its bikes.