CC - Resolution

Resolution Authorizing an Amended Agreement with P3 Global Management and OjO Electric, LLC


Department:Transportation & ParkingSponsors:


  1. Printout
  2. Ojo MOA Amendment


WHEREAS, on May 1, 2019, Hoboken City Council approved a six-month electric scooter sharing pilot program that was designed to increase sustainable transportation options within Hoboken; and,


WHEREAS, on May 20, 2019, the City of Hoboken launched a six-month pilot electric scooter sharing program; and,


WHEREAS, after a little over two months of the pilot program, there have been over 260,000 trips taken by over 50,000 unique riders; and,


WHEREAS, almost three quarters of riders are Hoboken residents; and,


WHEREAS, since May 20, 2019, riders of Lime and OjO scooters in Hoboken have collectively traveled over 240,000 miles, which is further than the distance between the Earth and the moon; and,


WHEREAS, ridership per scooter per day on Lime scooters has been higher in Hoboken than in any other Lime scooter market in the world; and,


WHEREAS, high e-scooter ridership volumes have contributed to administrative challenges that require the expenditure of significant financial resources; and,


WHEREAS, the initial agreements with Lime and OjO required administrative fees of $50 per scooter in circulation to be paid to the City, which has since been insufficient to cover the administrative costs associated with sustaining a long-term e-scooter sharing program in Hoboken; and,


WHEREAS, the Administration has been negotiating amended agreements with Lime and OjO for several weeks which would result in more substantial administrative fees paid to the City; and,


WHEREAS, the Administration has agreed to an improved revenue sharing deal with Lime and OjO in which the City will receive $0.35 per ride for the remainder of the pilot program; and,


WHEREAS, based off of ridership estimates, the $0.35 per ride fees are expected to generate approximately $150,000 in revenue between August 8 and November 20; and,


WHEREAS, over the course of a 12-month period, the Administration estimates that the City would receive approximately $400,000 in revenue from e-scooters; and,


WHEREAS, revenue generated from e-scooters would go towards administrative functions that will help improve address safety and education efforts associated with an increasingly popular program, including but not limited to increased enforcement, education, and infrastructure, which should collectively help improve program safety and rates of rule compliance by riders; and,

WHEREAS, the City Council wishes to authorize the execution of an amended agreement with P3GM as attached.


NOW, THEREFORE, BE IT RESOLVED, that the Mayor or his designee may execute the attached amended Memorandum of Agreement with P3 Global Management, which will allow P3 Global Management to operate a temporary electric scooter sharing program in Hoboken for a period not to extend beyond November 20, 2019.