Shared e-bikes that have been clogging footpaths across Sydney will soon be required to use designated parking bays, as the New South Wales government announces funding for such infrastructure.

On Tuesday, the state government unveiled a $6.6 million funding package for Sydney’s local councils to identify and delineate dedicated parking zones. Each council may receive up to $200,000.

Operators contribute to the Sharing Scheme Grant Program via a 60‑cent fee per shared e-bike trip. When the initiative was first launched last year, companies such as Lime indicated that the charge might be incorporated into existing user fees.

The number of shared e-bikes across Australia has quadrupled in under two years, with the majority concentrated in Sydney. The city’s e-bike fleet expanded from 13,000 in January to over 20,000 by May, per Transport for NSW.

NSW Transport Secretary Josh Murray announced on Tuesday that more than one million residents now use shared e-bikes each month, roughly double the figure from October.

Transport Minister John Graham acknowledged that while the expansion of shared schemes is beneficial, the government will not tolerate the continued “wild west” conditions on footpaths.

‘Pedestrians have been demanding order and the restoration of their footpaths,’ Graham said.

The government states that the funding is intended for the 16 councils currently operating shared e-bike schemes to install marked bays on streets and kerbsides in locations experiencing the highest conflict and complaints.

The NSW government announced $6.6m in funding for Sydney local councils to nominate and paint dedicated ebike parking areas. Photograph: Matt Horspool/NSW government/Transport for NSW

The scheme was announced last year together with expanded powers for local government areas, which Graham indicated would be implemented progressively over the coming months.

Councils are empowered to establish “no-go” and “slow-go” zones for both shared and private e-bikes, and may penalise operators if designated parking areas remain unused, with fines up to $55,000 plus $5,500 for each day the violation persists.

Graham explained that councils would determine the parking zones, while operators would enforce compliance through GPS tracking of bikes and by requiring users to submit photos confirming proper parking.

The government is moving toward a requirement that e-bike riders must park in a designated bay to terminate their trips; otherwise, the billing meter would continue to run, Graham said.

Thirteen NSW councils currently host share-bike schemes, and several have already piloted dedicated parking initiatives, including the City of Sydney, North Sydney, and Waverley. Transport for NSW has trialled parking zones at nine train and metro stations across Sydney, providing space for approximately 190 e-bikes.

Murray noted that the agency is accelerating the rollout of additional bays at other transport hubs and stations.

‘We aim to have 250 bays available by the end of this year, with 62 already in the delivery pipeline,’ he said. The government highlighted that its trial demonstrated marked bays cutting the incidence of toppled bikes and obstructed footpaths by half.

Graham added that he expects councils to install thousands of additional parking spots before the year’s end.

‘We must change the culture,’ Graham said. ‘We will see improvement here.’

These changes form part of a broader safety crackdown on both shared and private e-bikes amid a surge in related injuries.

The government has granted authorities the power to seize and dismantle private e-bikes that exceed 25 km/h, though a minimum riding age has yet to be determined.

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