You’re right, I don’t have experience running an eScooter hiring business.
But as a contractor we do occasionally carry out work for the Council. They make sure we have Public Liability Insurance, even for very minor works. But to be fair, it’s good practice to have it anyway.
The Council are also very strict on Health and Safety in a way that wouldn’t apply on non Council work below a certain size.
These are the experiences I’m drawing upon in an effort to answer your question.
Considering how thorough the Council are when awarding contracts, i’d be highly surprised is the Council just decided, on this occasion, to let these eScooter companies have an unregulated free hit.