The Advertising Standards Authority (ASA) is scrutinising Forest, a competitor of Lime, for potentially misleading claims regarding ‘free’ e-bike services.
- London’s e-bike operator Forest claims daily free usage minutes, yet a required unlock fee may contradict these claims.
- Forest’s promotion of ‘ten minutes free daily’ rides has drawn complaints and an investigation by the UK advertising regulator.
- Despite claiming free rides, users incur a flat service and unlock fee, raising questions about transparency.
- Forest maintains transparency in its pricing via app notifications and signage, with options for fee-free bundles.
The Advertising Standards Authority in the UK has initiated an investigation into the e-bike rental company Forest, originally known as Human Forest, which operates in London. The investigation arose following allegations that the company had misled consumers by advertising its e-bike services as free. Primarily, the concern revolves around Forest’s claim of offering ten minutes of free daily riding.
Although Forest’s promotion suggests that consumers can ride for free for ten minutes each day, the reality involves additional fees. Users must pay an unlock fee and a flat service fee of £1.90, despite the advertised ten minutes of free use. This situation has spurred complaints and led to the current probe by the ASA, aiming to determine whether these marketing practices are indeed misleading.
According to a statement given to UKTN, a representative of Forest affirmed that the pricing elements, including the daily service and unlock fees, are clearly communicated during the sign-up process and through the app used by customers. However, the promotional material on the e-bikes themselves, which advertises ‘ten minutes free daily’, has raised questions about the clarity of these communications.
Forest offers pricing bundles that circumvent the unlock and daily service fees, starting from £3 for 30 minutes across multiple rides and valid over 24 hours. These bundles are designed to provide better value for frequent users, although the investigation primarily concerns the transparency of the ‘free minutes’ offer.
Since its inception in 2020, Forest has prided itself on being a cost-effective and sustainable alternative to its rival, Lime. The company has successfully raised over £20 million in investments, including a noteworthy £17 million in a Series A funding round earlier this year. Forest’s founder and CEO, Agustin Guilisasti, recently commented on their ongoing mission to make zero-emission travel accessible, while also highlighting the significant financial sacrifices made to offer these promotional minutes.
The ASA’s investigation into Forest will ascertain whether the promotional tactics align with advertising standards, impacting consumer trust.
