New York City on Wednesday issued a cease-and-desist notice to a privately run rival for City Bike – seeking to stop it because it is not authorized, sources told the Post.
The city’s Department of Transportation sent a letter of instruction to Joko, a transit start-up to introduce the e-bike for its new bike-share service in Manhattan this week.
The DOT told the company in the letter, “Please be advised that you do not have authorization or permission, concession, franchise, permit, contract, otherwise required for such operations.”
“Accordingly, you are directed to remove and immediately withdraw from any such bicycle share operation.”
City is the latest “micro-mobility” company to attempt to launch Big Apple with City Apple in front of City Bike’s contract, which gives the company exclusive rights to operate in its service area.
But a lawyer for JOCO emphasized its business model is completely legal, as its e-bike docking stations are located on private property.
“Joko’s business model, where rental transactions and trips begin and end exclusively on private property – on city streets – is not expressly permitted under NY state law,” Matthew Douce told the Post in a statement Told.
“In our legal opinion, this is not a public bike share system, and the NYC DOT has no jurisdiction over what happens on private property,” Daus said.
Daus said that the company has already started its operations.
Joco’s founder – who is both Jonathan Cohen – has said that hundreds of e-bikes will be made available this week at 30 privately owned locations in Manhattan.
The founders said they hope to expand to 800 e-bikes and 100 docking locations by the fall.
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