'Cost of living and changing business travel habits' sees Co Cars collapse
Exeter-based Co Cars and Co Bikes will cease trading
Last updated 14th Jul 2023
A West Country-based electric car and bike hire firm has fallen into administration - with the councillor in charge of transport for Devon County Council calling it 'sad news'.
Exeter-based Co Cars and Co Bikes operated electric vehicle hire services in Exeter, Salisbury, Plymouth, Falmouth and Truro - and were also looking to expand into Taunton.
The non-profit company, which later branched out into hire bikes, started in 2005 and boasts around 50 low-emission shared cars and over 200 electric bikes - with a customer base of roughly 10,000.
In a statement, Nic Eversett, Managing Director, said tonight: "Despite everyone working extremely hard to provide shared mobility services for Exeter and the wider South West, it has been increasingly difficult to generate sufficient income to cover our costs.
"Initially, we were severely affected by the suspension of our services for long periods of time during Covid. Post-Covid, changes in travel habits, exacerbated by the cost-of-living crisis and drop in demand for business travel, have significantly impacted utilisation and revenue. These factors have been aggravated by high fuel prices and energy costs, contributing to greatly increased internal costs.
"Furthermore, vandalism of the bikes and supply chain issues (especially for e-bikes) have made it impossible for us to keep enough of the fleet on the road to make the business viable.
"During the last few months, the Board and management team have focussed on seeking additional funding to allow us to make the necessary changes to our business model to safeguard its viability. Unfortunately, we have been unable to attract the level of funding needed.
"Sadly, this means Co Cars and Co Bikes will cease to operate car and bike services by the 14th of July 2023.
"The Board has engaged the services of insolvency experts from Milsted Langdon LLP who have assisted the Board in seeking a purchaser for all or part of the business and who will be managing the process of taking the company, Co Cars Limited, into Administration. We expect that this will happen by the end of week commencing 17th July.
"The Board and I would like to sincerely thank everyone who has supported Co Cars and Co Bikes. You have helped Exeter and the Southwest experience the many benefits of using shared mobility services.
"We are devastated that Co Cars Limited won’t continue but we are proud to have helped reduce pollution and congestion on our streets whilst also increasing active travel.
"To that end, we are looking for potential new providers who could keep the cars and / or the bikes operating into the future as we passionately believe these services are an essential part of a low carbon, integrated public transport network."