The coronavirus made a severe dent in the company. Still, their weak position in Hungary could become worse because of the lack of tourists and the National Tax and Customs Office.
Lime’s electric scooters are coming back to the streets of Budapest, as the pandemic is seemingly starting to wind down; however, the territory in which they operate will be decreased. The company would have to pay for the use of public space, so they won’t be able to be rented in the 5th and 6th districts, reported G7.
Mainly foreigners and tourists used the services of the electric scooters. As tourism died down due to COVID-19, the scooters were removed from the capital, which left users surprised and let down, as we have reported before.
There are no detailed data about the loss of the company; however, their prices were significantly decreased, as the charging of a scooter cost 1,200 forints (approx. €3.5) previously. Still, now it is down to just 400 forints (approx. €1).
The lack of tourists and income is not their only problem, unfortunately, as the Tax and Customs Office started enforcement against their Hungarian subsidiary, Lime Technology Kft. on May 28. They had already initiated one last November, but the company most likely paid for their use of public space, and so it was suspended on December 16. They were also banned from use near the Parliament last November.
Another problem with Lime is that the users do not automatically receive an invoice, which they should. When G7 asked their Dutch head office, their reply was, that each user who requests an invoice from the customer service receives one.
The scooters only last for about an hour, and they need to be taken to charging stations by car, which is very much counterproductive when they are supposed to be green products.