The City of Melbourne on Tuesday night voted to tear up contracts with e-scooter companies operators Lime and Neuron Mobility.
The motion, submitted by Melbourne Lord Mayor Nicholas Reece and councillor Davydd Griffiths, passed with a 6-4 majority.
Neuron and Lime's contracts with the city were due to expire in April 2025 but the council had the power to end them with 30 days' notice.
Premier Jacinta Allan said the move was an "interesting" change of heart from Mr Reece, who stood alongside Public Transport Minister Gabrielle Williams on July 19 when she revealed private and rental e-scooters would be permanently legalised from October.
"The lord mayor was out there talking about the three million trips that e-scooters have saved across the city, and how they have a role in that public transport network," she told reporters on Wednesday.
Victorian Premier Jacinta Allan says e-scooters need to have stronger rules around their usage. (Diego Fedele/AAP PHOTOS)
The state government also announced fines would increase for using e-scooters on footpaths and new penalties for double-dinking and riding without a helmet.
Ms Allan said those rule changes will proceed as planned and urged the council to reconsider its position.
The premier said she hoped it would not come to the state government having to intervene.
"Our common sense decision was that there was a role for e-scooters," she said.
"They need to be used responsibly, they need to have a stronger safety regime and rules around them ... because they do bring a particular benefit to many in our community who can use them for those last mile trips."
Speaking before the premier's push back, Mr Reece said he had listened to community concerns.
"I've heard in recent days from residents, from traders, from visitors to Melbourne, literally begging us to bring the trial to an end to make our footpaths safe again, to make Melbourne safe again," he said.
Private e-scooters can still be ridden within the City of Melbourne and share bike schemes will continue to operate.
Mr Reece said share bikes had not create the same "lawlessness" witnessed with e-scooters.
"We don't see the double-dinking, we don't see the riding on the footpath, we don't see people riding around with helmets," he said.
Rental e-scooter trials remain in the Melbourne council areas of Port Phillip and Yarra, as well as the City of Ballarat.
Mr Reece is running to be elected lord mayor in the Victorian local elections in October.
He took over from Sally Capp in July after serving as her deputy and has picked Roshena Campbell as his running mate.
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