E-scooter provider Lime has launched a scathing attack on its rivals and the Adelaide City Council, even threatening legal action, after being told to pack up and leave within days.

Key points: Lime launched its pilot program in Adelaide after success in Brisbane

Lime launched its pilot program in Adelaide after success in Brisbane Adelaide City Council has granted two other e-scooter companies permits instead of Lime

Adelaide City Council has granted two other e-scooter companies permits instead of Lime Lime has severely condemned that decision, saying it was considering its legal options

The company had been hoping to secure a permit to continue operating within Adelaide after a trial which launched in February was extended into April.

But the city council today announced it had granted two other "urban mobility" companies permits to operate e-scooters across the city from next week.

It said successful candidates Beam and Australian-owned Ride offered better incentives to leave scooters in a good condition and to keep them within prescribed boundaries.

The council confirmed it would ask Lime to cease operations after it was unsuccessful in its bid to secure either of the two new permits.

Beam and Ride will now be permitted to deploy e-scooters from April 15 for a six-month period, but that decision has deeply angered Lime.

The company's government affairs director, Mitchell Price, condemned the council and Lime's rivals.

"No-one knows who they are … these people have no idea how to run a complex, costly operation like e-scooters," he said.

"We're operating in over 100 cities around the world, and we've never seen a process be run and be as flawed as this one."

The company is calling for a review of the council's decision, saying it had invested substantially in the Adelaide market.

"We have spent in excess of millions of dollars in scooters, in a warehouse, in helmets, in engineering, millions of dollars have been invested into the city," Mr Price said.

"You can set up shop in business, you can invest millions of dollars, you can hire 250 local staff, you can generate the local economy, but then we're going to boot you back out because we don't like you.

"We'll be looking at all our options, including legal options on the table to contest this decision because the safety of South Australians has been put last."

The e-scooter trial began in Adelaide ahead of the Fringe festival. ( Reuters: Paul Hanna )

Beam declined to comment about Lime's claims but said it was "over the moon" after being awarded the right to operate in Adelaide.

"We are very excited that soon, people in Adelaide will be able to try our e-scooter and our technology and will have a choice of two providers," CEO Alan Jiang said.

"We believe that our focus on and investment in safety will be something the people of Adelaide will notice and come to really appreciate."

Ride would also not be drawn on Lime's comments but said it was "really excited" to secure the "opportunity to operate".

"We'll be hiring a full operations and city manager team for Adelaide, and we have some of those positions filled, and we'll be adding to that over the coming week or two," CEO Tom Cooper said.

The city council defended its handling of the matter.

"We have behaved in a professional manner at all times, consistent with our code of conduct, and consistent with the standards we require of ourselves, and our employees," operations director Beth Davidson-Park said.

Lime plagued by safety concerns

Safety concerns have hindered Lime over the past few months, particularly in New Zealand and Brisbane, with an apparent braking fault causing the electric scooter's wheels to lock up without notice.

The US tech company has already secured 150,000 users in Brisbane.

Lime is also currently operating its e-scooters in Brisbane. ( ABC News: Alle McMahon )

During the Adelaide trial a van collecting scooters rolled over, and Lime revealed last month that riders in Adelaide had been issued with hundreds of cautions by police during the trial and some of its scooters were vandalised.

Ms Davidson-Park said both Beam and Ride met safety and usage requirements to the highest standard.

"One of the most important things is that their geo-fencing works, the safety of the scooters works, and the customer interface will be of a high quality," she said.

"Customers will be getting an incentive to park in preferred spaces, leave their e-scooters in an upright manner, with their helmets, and they'll also be penalised if they leave it in inappropriate places or if they leave the geo-fenced areas.

"The first trial clearly showed e-scooters are a convenient form of transport with more than 140,000 trips recorded," she said.

Lime's Adelaide trial has been plagued my mishaps, including a scooter van rollover. ( ABC News )

Councillor Anne Moran said there was a desire in council to reward local companies like Melbourne-based Ride, rather than Lime, which was based out of San Francisco.

"From my mind and a lot of other councillors, that was very important, that the money stayed in the state and we rewarded a local supplier with the contract," she said.

She said there also was concern that Lime used trucks to collect and charge its scooters overnight, while other providers had more eco-friendly solutions.

"EcoCaddy was being used to pick up the scooters, whereas Lime scooters use trucks, and many on council thought that was anti-green and not as efficient," she said.

Premier Steven Marshall said he welcomed the second trial, which will run for six months, and was open to changes going forward, including trials outside the CBD.

The new trial is set to begin on April 15 and the permit governing Ride and Beam will be geographically limited and bound to the area within the city.

