The rental bicycle company owes Stockholm more than SEK 7 million

The rental bicycle company owes Stockholm more than SEK 7

It has been over a month since Stockholm’s new rental bicycle system, Stockholm eBikes, was inaugurated outside City Hall. The launch was greatly delayed and reviews from dissatisfied customers quickly fell in. The complaints were, among other things, that the electric bicycles did not start, that the app showed incorrect information and that the 1,000 bicycles promised at launch could not be found in the city.

The owner company Inurba mobility has since promised to fix the problems and deliver a complete bicycle system to Stockholmers soon. But inside the traffic office, the frustration grows because the company violates almost 20 points in the agreement, every day.

– If we make the assessment that they will not get the system in order soon, termination of the agreement is a possibility. But we must have that discussion with politics first. It is not on the table right now but we are approaching that limit, says Ulrika Falk, department manager for permits at the traffic office.

The problems are among other things, that the app should show battery status on all available bikes and have a fault reporting function available, something that is currently not met. In addition, it must be possible to switch off the electric drive on the bicycles if the user so wishes, an empty bicycle station must be filled within a maximum of 60 minutes and borrowing a bicycle may take a maximum of 20 seconds – these requirements are not met either.

For Stockholmers, a revoked agreement would mean that the city must procure a loan bicycle system again, something that took four years at the latest.

– It is a situation neither of us wants, we have been in it for too long. We have just come out of four years of court proceedings and looked forward to having this system in place, of course it does not feel good, says Ulrika Falk.

When DN goes out on the town and visit 16 different bike stations, several are completely empty even though the app shows the opposite. According to customer service, the bikes seen in the app have been picked up by the company’s technicians for updating and repairing. They apologize for the mishap.

Several other bicycles are discharged, the electric motor shuts off halfway through the trip and several times it is possible to book a bicycle which is then not in place. According to the company, there should be close to 200 bicycles available on the streets at present.

As long as all 1,000 bicycles are not available on site, the company Inurba Mobility is required to pay SEK 100,000 every day in fines from the city. Since April 1, the debt has skyrocketed to just over SEK 7 million, but the company claims force majeure and believes that the delays were beyond their control. Causes in China as a result of covid-19, the war in Ukraine and the strike in Italy are mentioned as reasons.

– The strike in Italy delayed the engines for the bicycles. Then we missed the production slots at the bicycle manufacturer’s subcontractor, that is mainly the reason why we got started so late, says Daniel Mohlin, Nordic Manager at Inurba Mobility.

But you knew about the corona pandemic when you signed the agreement in the autumn of 2021, how could it have been difficult to predict?

– We placed the order on the bikes at the same time as the agreement with the city was signed, and we then had confirmed delivery plans from our suppliers that the bikes would arrive well in advance of start of operations.

Daniel Mohlin believes that the other problems, such as the bicycles not working as they should, are currently being remedied and the promise to the city is now to deliver the promised 1,000 bicycles by the end of July.

– We operate this type of system in other major cities in Europe with great results. We have never experienced such problems with a supplier. Basically, it is a good bike, we are completely confident with it. When the faults are rectified, they are fantastic bikes, he says.

The agreement between Inurba Mobility and the City of Stockholm is expected to generate just over SEK 400 million in revenue through advertising revenues over seven years. In the latest traffic committee, the opposition mayor Jan Valeskog (S) demanded that the agreement be terminated on 1 July if all requirements are not met before then. The proposal was voted down in the committee.

Has the city been cheated on this procurement?

– Of course we feel cheated because we still do not have a loan cycle system. We have entered into this with a company that we thought would and wanted to deliver, but we have not seen the smoke of it yet, says Ulrika Falk.

DN is testing the new loan cycle system

11:18. The ring

The first stop where there should be a free bike, according to the app.

Finds no one and walks towards Götgatan instead.

11:30. The intersection Götgatan / Katarina Bangata

No bike in place, even though according to the app there should be one.

11:38. Medborgarplatsen

No bike here either, even though there should be one according to the app.

11:48. Locks

Two bikes available according to the app, but they can not be found. Meet two Austrian tourists whose one bike only works manually, the electric function has stopped completely. “It’s crap,” says one of them about his experience.

12:06. Skeppsbron

First available bike at five stops. It should take 20 seconds to rent a bike according to the agreement, but it all takes about a minute. The electric function cannot be switched off.

12:13. Strömkajen

It is quick to park and the bike is handed over to an elderly American couple who want to go to Djurgården. They stand for a long time and try to figure out how to buy a subscription. One of them thinks it feels awkward to have to download two different apps and register instead of paying directly.

12:17. Kungsträdgården

A lone punctured bicycle stands in the parking lot. Other bicycle stations in the city are completely empty according to the app.

12:38. Karlbergsvägen / Torsgatan

Bicycle number two that is fully charged and accessible. Uses the “book” function that can be used four minutes in advance so no one else has time before. This rolls gallantly down towards Sankt Eriksplan and both the bell and all five gears cooperate.

12:48. Vasaparken / Odengatan

The bike is fully charged but impossible to pedal. It protests loudly and does not want to be led away. It is not possible to report errors in the app, but if you call customer support. They inform that the bike has already been reported faulty and should not be available for rent.

13:04. Vanadisplan

Succeeds in booking and starting a journey on a bicycle that according to the app is not in place. According to customer support, it has been picked up by repair technicians and should not really be available for rent.

14:10. City Library

Three vacant bikes according to the app, but find only two. However, one is discharged and the one that works squeaks with each step.

15:03. Kungsgatan

A vacant bicycle that, on the other hand, cannot be rented. The app displays the error message “the car you selected is not available at the moment”.

15:17. Moodgallerian

Two bicycles on site according to the app – one can not be rented.

15:26. Brunkebergstorg

The app shows a free bike that turns out to be discharged. A woman tries to book it anyway. She has not tested the system before, but needs a bike fast right now, she says. She tries to pedal away on a bicycle but quickly realizes that it will not work. “They have problems with the app, it says,” she says and starts walking towards the subway.

15:44. Jakobs torg

A vacant bike in the middle of the square. It is difficult to pedal until the electrical assistance starts, but then it goes well. When it’s time to park, we manage to end the journey 25 meters outside the bike station, even though according to the agreement it will not be possible to park more than 10 meters away.

15:59. Norrmalmstorg

Two bicycles in place – one is off and not visible in the app. The one that works is fully charged and rolls for a few meters before the engine gives up. The gears start to crackle and every pedal feels like cycling in cement.

According to the app, there are no more vacant bikes nearby.

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Facts. Stockholm’s rental bicycles

On May 10 this year, Stockholm’s new loan bicycle system was inaugurated. This after a lengthy bureaucratic process that was fraught with several appeals.

According to the agreement, however, 1,000 electric bicycles would have been in place as early as April 1, an agreement that is estimated to be worth SEK 400 million over seven years. According to the agreement, the company must pay SEK 100 per cycle and day because there is no complete system. This means that the city currently demands a fine of SEK 700,000 a week.

According to the plan, the system will be fully developed in one year. This will include 5,150 electric bicycles and 120 electric box bicycles distributed at 300 stations in all districts.

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