The City of San Diego has notified Lime it has initiated a process to revoke the micro mobility company’s operating permit.
“This is to notify you of the City of San Diego’s intent to revoke Lime’s Shared Mobility Device permit,” the City’s Aug. 16 letter read. “Lime was found in violation of San Diego Municipal Code 83.0308, geofencing speed and operating restrictions on July 13, July 14 and Aug. 1. The City’s Development Services Department has requested a hearing to initiate the revocation process. When a hearing date is scheduled, Lime will receive a 10-day notice via U.S. mail.”
Lime said it has responded to the City’s new regulations by creating on-street corrals encouraging riders to stay off sidewalks, and by launching a “Dont drink and ride” detection feature in its app, which alerts riders after 10 p.m. to confirm they are not intoxicated. 
Claiming three million people in San Diego have ridden its scooters, Lime argues people who can’t afford Uber use them to get to work, pointing out they are in business to fill that void.
A code enforcement proceeding before a hearing officer is to be scheduled sometime in September to determine Lime’s fate. Lime will keep its operating permit until that hearing is concluded.
The company said it employs about 130 full-time staffers in San Diego, as well as some 3,000 gig-economy workers on a weekly basis.
Among other things, SDMC 83.0308 proscribes that shared mobility devices shall not be parked, displayed, offered, or made available for rent: within 40 feet of another shared mobility device; on City sidewalks or other City property on the block adjacent to a location designated by the City for shared mobility devices; in Disabled Persons Parking Zones; within 500 feet of a hospital or school; within six feet in any direction of any sign marking a designated bus stop or trolley stop; or within six feet in any direction of any transit shelter, bench, or information kiosk associated with a bus or trolley stop.
New City regulations governing electric scooters took effect July 1.
‘We believe the new scooter regulations allow the industry to evolve responsibly and gives the City the power to hold operators accountable by revoking permits for those that don’t follow the rules,” said senior City press secretary Christina Di Leva Chadwick, adding complaints the mayor’s office continues to receive about scooters include problems with “geofencing, corral staging and user-compliance issues such as speed limits, double riding and other existing street laws.”
Di Leva Chadwick noted Mayor Kevin Faulconer has gone on record supporting a scooter ban on boardwalks.