Chicago Divvy – Lime is pushing for a delay on a proposed Chicago transit ordinance, arguing that extending Lyft’s Divvy contract would create a monopoly and force the scooter company out of the market.
The future of Chicago’s streets sits on the desk of Ald. Daniel La Spata, waiting for a committee vote this Friday. For Lime, the city’s last remaining independent scooter operator, the proposed ordinance isn’t just a policy update—it is an existential threat.
In a drafted letter to La Spata. the chair of the Pedestrian and Traffic Safety Committee. Lime warned that the current plan to extend Lyft’s contract to operate the city’s Divvy bike- and scooter-share system would grant the provider an unfair. government-sanctioned advantage. If passed. the company argues. the deal will effectively install a monopoly. driving up consumer prices and forcing Lime to abandon its Chicago operations entirely.
The tension over the city’s micromobility future follows a pattern of attrition. When the city first issued e-scooter licenses in 2021, the landscape included Spin and Superpedestrian. Superpedestrian exited the city in 2023, citing the difficulty of competing with Lyft, while Spin ceased its local operations last year. Lime now stands as the final alternative to Lyft, which has managed the city-owned Divvy system since 2019.
“This proposal as currently written would actually create a monopoly for Lyft by making it impossible for Lime to operate a successful program. ” said Lime spokesman Jacob Tugendrajch. The company is now demanding the city rewrite the deal to address these monopoly concerns. while also requesting transparency regarding the expected costs of the five-year extension and a disclosure of revenue numbers from all participants.
Mayor Brandon Johnson, who is sponsoring the ordinance, proposed the extension last month. The plan aims to expand the Divvy “core area”—though specific boundaries remain undefined—and offers half-off discounts for rides on the South and West sides. The mayor’s office stated it appreciates Lime’s investment. adding that it will continue to engage with industry partners and City Council members as the legislative process moves forward.
Economic friction drives the conflict, with Lime highlighting a disparity in affordability. Lime reports that its own access program for low-income residents is 34% cheaper than Lyft’s current discount pricing. Furthermore, Lime notes that Divvy’s standard prices are 19% higher than its own on the South and West sides. The company points to New York City’s Citi Bike program. also operated by Lyft. as a cautionary tale of a “geographical monopoly” that has led to higher costs for residents.
Despite being prohibited from operating in the Central Business District—a zone reserved exclusively for Divvy—Lime recorded 6.1 million rides last year. In comparison, the Divvy fleet logged 6.8 million rides across its bikes and scooters combined. As the Friday committee deadline approaches. the city must now decide whether to lock in a single. dominant provider or maintain a competitive landscape for residents.
Chicago Lime Lyft Divvy City Council micromobility transportation Brandon Johnson Daniel La Spata