JoCo E-Bike Operations Continue Despite NYC Lawsuit

New York City's Legal Challenge to JOCO Bike-Share Faces Setback

The City of New York experienced a legal hurdle on Thursday in its attempt to halt the operations of JOCO, a docked electric bike-share service. A temporary restraining order, sought by the city, was denied by the court.

City's Allegations and JOCO's Defense

The city’s lawsuit, filed on Wednesday, asserts that JOCO is operating without the necessary legal authorization. Specifically, the city contends that all bike-sharing systems require prior written approval from the Department of Transportation.

JOCO, however, maintains its compliance with existing laws. The company argues that because its docking stations are situated on private property, it falls outside the scope of the city’s regulatory authority.

Prior to the lawsuit, the city issued a cease-and-desist notice to JOCO in late April, a directive which the company chose to disregard.

Court Decision and JOCO's Response

The court’s decision on Thursday denied the city’s request for a temporary suspension of JOCO’s operations, pending a full hearing scheduled for June 16th.

Johnny Cohen and Jonny A. Cohen, the co-founders of JOCO, released a statement expressing their satisfaction with the court’s ruling. They indicated plans for expansion, aiming to provide New Yorkers with increased mobility options as the city recovers from the pandemic and residents return to work.

JOCO's Expansion Plans and Partnerships

JOCO initiated its service in April with 300 e-bikes distributed across 30 stations throughout Manhattan. The company anticipates nearly tripling this number by June.

Strategic partnerships with parking garages, including the prominent Icon Parking – the city’s largest private garage operator – are central to JOCO’s expansion strategy.

The Existing Bike-Share Landscape

The lawsuit seeks a civil penalty of $5,000 for each day of alleged violation. It highlights that Citi Bike, a subsidiary of Lyft, currently holds the sole authorization from the DOT to operate a bike-share system within New York City’s five boroughs.

The Citi Bike system, launched in 2012, has facilitated over 111 million trips. Its establishment stemmed from a departmental request for bike-share proposals, prioritizing public benefit through mandated safety protocols, service standards, maintenance requirements, and consumer privacy protections.

JOCO's Commitment to Safety

The Cohens emphasized their dedication to safety standards in a statement to TechCrunch. They highlighted their fleet management practices and the provision of free helmets to all members.

They described JOCO as a responsible startup focused on comprehensive safety measures and utilizing a high-quality bicycle.

A JOCO spokesperson declined to provide additional commentary regarding the city’s rationale for regulation and the exclusivity granted to Citi Bike.

Public Reaction and Concerns

New York State Senator Liz Krueger voiced her opinion on the matter via Twitter, stating, “We all live on top of each other in NYC. Our street space requires thoughtful regulation to be functional and safe. Any transportation service that moves people in large numbers on the public right-of-way needs oversight, public accountability and to obey the laws that exist.”

Investment and Exclusivity

The lawsuit argues that the exclusive operating rights granted to Citi Bike incentivize the private capital investment necessary for system expansion. The city’s contract with Lyft, most recently amended in 2020, includes a $300 million investment dedicated to expanding the bike-share network.

A Lyft spokesperson declined to offer a comment on the ongoing lawsuit.

Note: This article has been updated to reflect the denial of the injunction on Thursday.