Auckland Council says Lime scooters will be temporarily suspended from the city.
The ban comes after the company failed to prove its scooters were safe, amid reports of a number of injuries related to the front wheels locking up.
Dean Kimpton, Auckland Council chief operating officer said that he met with Auckland Transport (AT) and Lime representatives to discuss the issues, and had decided on a temporary ban.
"We have been clear with Lime representatives that the equipment used on our transport network must be safe for use.
"The safety of people using e-scooters and those that share the environment with them is our number one priority."
- Lime scooters could be forced off Auckland's streets
- Cyclist riding dangerously on Auckland's Northern Motorway shocks bus passengers
The suspension will last until Monday, when Lime will have another opportunity to present information to AT and the Auckland Council regarding equipment safety.
Mr Kimpton said there had been 92 reported "irregular braking incidents" in Auckland, which resulted in 19 separate injury claims.
If the suspension is then lifted, AT and Auckland Council say Lime will have to adhere to a new list of operating regulations.
These include Lime providing incident reports every 48 hours and meeting weekly with relevant staff to discuss Lime's response to any incidents.
Auckland Council will also be appointing an independent reviewer to overlook Lime's safety management and processes.
Mr Kimpton said Lime agreed to the conditions and once the council is provided with the necessary information, "we will make a further decision on whether Lime's license suspension will be lifted."
"Lime has this afternoon been notified of this decision and we expect them to begin managing the removal of their scooters as soon as possible.
After a meeting in Dunedin on Friday, the city's officials have confirmed following in Auckland Council’s footsteps and pulling the scooters from city streets.
They will not be back on the streets in Dunedin until issues with the scooters' locking systems and safety concerns have been resolved.
"While we appreciate the amenity that e-scooters offer as an innovative transport solution, safety is not negotiable," said Mr Kimpton.