The City of Hobart is giving Beam 24 hours to show why its e-scooter licence should not be revoked.

This decision is a response to accusations of underestimating the number of active scooters in other cities and calls from councillors to remove purple electric scooters from the streets of the capital.

Several other councils, including Canberra, Brisbane, Townsville and Auckland, have terminated their contracts with Beam over the allegations.

A Hobart City spokesman said it only learned of the allegations from media reports in late August.

The board has since launched its own investigation to determine whether Beam breached any terms of the contract, including the probation period.

“The City continues to work with other jurisdictions in Australia and New Zealand, as well as directly with Beam,” said City of Hobart CEO Michael Stretton.

“We have sent Beam a notice of cause. The company will have until the close of business on Friday, September 6 to respond.”

Stretton said that if Beam fails to fulfill his contractual obligations and provides a satisfactory response, the city “will not hesitate to revoke his license.”

“Regardless of the decision on the license, the city council will consider the future of e-scooter operation at its September meeting,” he said.