(Bloomberg) -- Lyft Inc., which operates the popular Citi Bike program, said it will raise fares for e-bike rentals in New York City by 20%, blaming higher-than-expected operating costs.

On July 10, e-bike fees for those with an annual Citi Bike or Lyft Pink All Access membership will increase to $0.24 per minute from the current $0.20, according to an announcement on Citi Bike’s website. Non-members will see fees raised to $0.36 per minute from $0.30. 

“Higher-than-anticipated battery swapping, insurance and vehicle expenses have made e-bike fleet operations more costly than planned,” Citi Bike said in the statement. It also said it’s working with the city’s Department of Transportation and Con Edison to pilot charging stations, which would reduce the need for van-based battery swapping. E-bike prices for rides in New Jersey remain unchanged.

Lyft has seen continuing growth in demand for e-bike rides, which it said now account for two-thirds of all Citi Bike trips. But it’s also been looking since last summer for a strategic partner that can invest in its bikes and scooter rental infrastructure, as Chief Executive Officer David Risher works to turn around the company’s core ridesharing business.

Citi Bike’s hefty maintenance costs were the subject of a report from New York City Comptroller Brad Lander last November, in which he called for an overhaul of the bike contract to “ensure more reliable and equitable service.” The report found “significant operational shortcomings” including unusable stations, longer periods of station unavailability and more broken bikes since Lyft acquired the service in 2018. 

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