More electric scooters coming to Lansing

WEDNESDAY, March 27 — Electric scooters are expected to return to downtown Lansing later this week.

Lansing City Clerk Chris Swope on Monday announced a licensing agreement with Spin, a San Francisco-based electric scooter startup owned by Ford Motor Company. It'll be the third to launch in the capital city and plans to drop off an unnamed number of scooters by the end of the week, according to city officials.

“They’re aiming for Friday,” explained Deputy City Clerk Brian Jackson.

Spin, founded in 2016, was reportedly purchased by Ford for about $100 million this year. The company launched a fleet of about 1,200 scooters in Indianapolis last week and now operates in at least 18 cities across the country — including Detroit. Plans reportedly call for expansion to at least 100 cities later this year.

The scooters look eerily similar to those launched in Greater Lansing by Bird last year. Jackson said Bird and Lime have have not confirmed plans to return to Lansing, despite a recent ordinance that guides their use. It’s unclear whether either of those companies plan to continue offering rentals again this spring, officials said.

After a wintry season curbed the newly-launched fleet of electric scooters in Lansing and East Lansing, city officials have worked in recent months to polish up some rules for their inevitable, warm-weather return. Both Lansing and East Lansing have since adopted ordinances and plans to rake in some extra cash in the process.

“This has potential to generate some serious revenue,” Lansing Councilman Peter Spadafore said previously.

Lansing rushed together a licensing agreement in October after Lime and Bird rolled into the city without much (if any) prior notice. The deal lasted 60 days, limited companies to 250 scooters and required a flat $125 licensing fee — standard for doing business on city streets. East Lansing never struck a temporary agreement.

An ordinance recently adopted by Lansing’s City Council charges each company an upfront, $2,500 licensing fee along with a 10-cent, per-ride surcharge for every scooter rented within city limits. Early ballpark estimates suggested Lansing could rake in about $75,000 annually. That will obviously be lower without Lime or Bird.

No formal revenue analysis has been done. That number crunching will come later. But the cash will hopefully be earmarked for infrastructure improvements like bike lanes and sidewalk enhancements, Spadafore said. Monthly ridership reports from each company could also help dictate where those projects are launched.

“We’re also requiring they work with the city to develop an educational campaign on the proper way to use these scooters,” Spadafore added. “We didn’t designate exactly what that’ll look like. It could be Facebook videos.”

The ordinance also removed a prior, 250-scooter limit from prior licensing arrangements.

Some local residents have voiced concerns about a theoretically limitless number of scooters littering city streets. But capitalism will ultimately solve the problem, Spadafore suggested previously. The overarching concept: If the scooters aren’t being used, they’re not going to redundantly line city sidewalks. That’s simply bad business.

“These scooters are moved,” Mayor Andy Schor said previously. “These companies track the usage and if they’re being used, they stay. If not, they’ve moved somewhere else. They’re not just dropping off scooters to leave them around town. If we have several hundred being used, then we’ll have several hundred scooters on the streets.”

As a precaution, Lansing’s ordinance includes language that allows the city to impose a cap if needed.

East Lansing City Council recently passed an electric scooter ordinance of its own. Restrictions there largely mirrored those in Lansing and also include a $2,500 licensing fee. 

The State News reported last month about Spin’s market interest on the streets of East Lansing. The company also reportedly engaged in conversations with Michigan State University about operating on campus. City officials confirmed Spin has since submitted a licensing application.

Estimated revenues on the East Lansing market are expected to rise into the “tens of thousands” this year but Mayor Pro-Tem Altmann couldn’t elaborate. Those funds are designated to cover the costs of administering the program. The remainder — like Lansing — will be allocated specifically to infrastructure improvements.

No electric scooters rentals have been spotted in either Lansing or East Lansing as of Wednesday evening.

Editor's Note: This story was updated with additional details about Spin's interest in East Lansing.