Electric Scooters (E-Scooters) Rental Trial 2 in London

Description

On 9 May 2020, the Department for Transport ("DfT") announced its intention to start trials of rental electric-scooters ("e-scooters") to help support cities across the United Kingdom as part of its restart and recovery response following the Coronavirus-induced lockdown, with the DfT demonstrating a preference for coordination of trials at a local level. Further to this, Transport for London ("TfL") worked with London Councils as representative for the 32 London boroughs and the City of London Corporation (together, the "Boroughs") to procure operators of rental e-scooters ("Operators") for a trial of e-scooters in London ("Trial"). The first phase of this Trial has been in place in London since 7 June 2021. On 28 June 2022, the DfT authorised relevant authorities to allow e-scooter trials to continue from November 2022 to the end of May 2024. This current opportunity relates to the procurement of Operator(s) of rental e-scooters for a second phase of the Trial in London, currently planned to commence by Autumn 2023 for an initial term of up to 24 months. The Trial term may at TfL's discretion be extended by up to 12 months. The second phase of the Trial may therefore run beyond May 2024 (when DfT currently envisages e-scooter trials ending) and as a result be subject to any new legislation that may be passed by Parliament. As with the first phase of the Trial, in the second phase TfL will lead the procurement of Operators, and the administration and co-ordination of e-scooter Trial operations. Potentially some or all of the Boroughs that are currently participating in the Trial will continue to do so in the second phase, and it is anticipated that more Boroughs in Greater London may join the Trial. By coordinating efforts, TfL and the Boroughs can continue to: • ensure a consistent and safe standard for e-scooters across London; • provide an evidence base for TfL and individual Boroughs' policy positions on e-scooters; • offer the only legal way to ride an e-scooter in public in London, with a central focus on safety; • remain an active participant in the government's trials, enabling London's learnings and data to shape national legislation; • maintain the environmental benefits of providing a green alternative to private car use; • help increase the resilience of conventional TfL transport options by providing an additional mode; and • set a benchmark that helps to drive up the standards of other micromobility services in London. Lot 1: This was a competitive procurement for the award of contracts to Operators in relation to the second phase of the Trial. The procurement was conducted pursuant to the Concession Contracts Regulations 2016 ("CCR 2016"). TfL have awarded contracts and entered into Administration Agreements ("Agreement") with 3 Operators, setting out the terms that apply to the Operator in relation to the provision of e-scooter services in the Greater London Area and its obligations to a) TfL as the administrator of the second phase of the Trial and b) the various London Boroughs and/or the City of London Corporation who wish to participate in the Trial by permitting the use of e-scooters within their respective jurisdictions. The Agreement provides that a Participating Borough may issue a notice to require the relevant Operator(s) to enter into a contract for the provision of e-scooter rental services in the geographic area controlled by that Participating Borough. Participating Boroughs may choose to enter a Full-Service contract for the provision of an e-scooter rental service or to allow e-scooters to be ridden through only (Ride-Through-Borough). Additional information: Plus extension of a further 12 months The value in Section II.1.5 represents the estimated total value of all the concession contracts as calculated in accordance with regulation 9 of the Concession Contracts Regulations 2016. This estimate is therefore the potential total turnover of the Operators, for the maximum contract(s) duration of 36 months. The calculation is based on overall ridership to date and prices under the current trial. This estimate is not an estimate of profit, nor a guarantee of revenue, nor does it represent any amount payable between the Operators, TfL or the Boroughs. TfL does NOT present the value on this notice as a promise of turnover and for the avoidance of doubt is not liable to Operators for any difference between the actual turnover and the amount in Section II.1.5)