The council was not impressed.
Council transport director Alton Twine said on Friday Lime had two hours to remove the scooters from the Gold Coast's streets and footpaths before it would step in and confiscate them.
"This morning Lime scooters have put some scooters out on the streets, which is actually in breach of one of our laws, so we’ll be serving them with a notice of complaints today," he said.
He said there could be a financial penalty if the scooters were not removed as the operation went against local laws in relation to the use of public spaces.
"They have to actually get permission from council, similar to what we’ve done with the Mo Bike operation," he said.
"What we don’t accept in the city is operators just turning up and essentially plonking their products down on city streets and footpaths.
"We would prefer people to come up and talk to us and the disappointing thing is that Lime did talk to us and they’ve chosen to set up anyway."
What we don’t accept in the city is operators just turning up and essentially plonking their products down on city streets and footpaths.Council transport director Alton Twine
Mr Twine said council needed to undertake a study of the operation before approving the use of Lime scooters, holding concerns over increased foot traffic and grey areas involving liability with crashes.
"We need, first of all, to consider public safety because essentially it’s a new form of transport (and) review what’s happened in other cities and bring a report back to council," he said.
"We’re concerned about overcrowding on footpaths anyway.
"We have areas, particularly on the coastal part, where we have a lot of users so adding even more is something which we need to consider properly."
Speaking with Brisbane Times on Friday, Mr Price said Lime had not received any notice to remove scooters within two hours.
“It’s funny they say they weren’t advised the scooters would be launched on the Gold Coast even though the first meeting we had with them was in July,” he said.
“We have had a number of meetings with council since and sent them an email last week of the launch.
“We advised them that if they failed to do something about the other e-scooters already being used on the Gold Coast for the past two weeks then we would proceed with the launch.
"We even spoke to two councillors this morning and there was no mention of this issue."
Mr Price accused the council of “playing politics with scooters” and "being out of step".
“They hadn't done anything to stop that company and now this heavy-handed approach from council towards our scooters, taking their resources to remove them is very disappointing," he said.
Mr Price said scooters on footpaths were not illegal in Queensland.
"This is where council has got themselves caught into a loophole is whether you're able to path the scooters," he said.
"If the scooter is deemed to be inappropriately parked, our team will move it.
"Two hours is enough time for us to ensure the work is done but we have not been sent an email to take the scooters off the street.
"I call on the Gold Coast council to talk to us, let’s sit down and work to find a solution instead of being the cops and saying no."
Mr Price said congestion and parking were significant barriers to locals and tourists enjoying the coast that scooters could alleviate.
"Why can't council have a better use of the ratepayers' money to help with congestion rather than removing scooters off the street?
"I am on The Esplanade right now and the streets are congested and cars parked incorrectly but council hasn't got a solution."
Despite a safety push from Lime, scooter riders can still be seen zipping around Brisbane at high speeds without helmets.
The Queensland government set out new rules for scooter riders, including a speed limit of 25km/h for "rideables" and helmets must be worn.
A new fine of $130 was created for the "incorrect use of personal mobility devices", while speeding will incur a $174 fine.
According to Gold Coast City Council, Lime was the second e-scooter business that had tried to set up in the city in December.
Mr Twine said this was a great concern to council, especially because it was illegal to operate a business in a public space without receiving permission.
"Public safety is our number one concern and this is entirely new to us ...that’s why these things need to be considered with due process and not just undertaken on the fly."
Mr Twine said the other e-scooter business was now operating from a private property.
"It removes them from the concerns of having the scooters out on public lands but we’re investigating whether they are fully compliant with city plan," he said.