There are various problems at hand for Lime, ranging from the threat of new entrants, vandalism of their bikes, and government policy (both federal and municipal). Looking at municipal policy, a lot of cities have regulations on where you can leave bikes and where bikes are and are not allowed. So, if bikes are left or operated in these areas, the cities can subsequently fine lime. The main issue with this is Lime inquires the direct cost of the fine, not the operator of the bike. Separate from that, there are regulations stating that the cities reserve the right to issue and revoke permits stating the exact number of bikes that are allowed on the streets at one time. The issue with this is there is essentially a cap on how large Lime's fleet can be and this cap is not driven by demand but is instead driven by government authority. As a result, this opens up a huge area for competition. For example, if the city is only willing to give Lime permits for 500 bikes on the street at one time but their actual demand is in need of 1000 bikes on the street at one time then