Co Cars and Co Bikes collapses into administration

Electric cars run by Co Cars are offered around Devon and Cornwall

An electric bike and car-sharing social enterprise company supported by hundreds of thousands of pounds of public money has collapsed.

Co Cars and Co Bikes said its car club and e-bike rental service in Devon and Cornwall would stop trading on Friday.

It said a range of issues including fuel prices and vandalism made it "impossible" to remain viable.

Devon County Council has spent more than £300,000 on the electric bike scheme.

The Co Cars company also raised more than £600,000 in a community share offer that ended in July 2020, with more than 300 investors.

Co Cars and Co Bikes will cease trading on Friday

The company, founded in 2005, offered "on-demand" e-bike and car rental in Exeter, Truro, Falmouth and Plymouth.

It said its on-street e-bike scheme in Exeter was the first in the UK to be offered city-wide.

Co Bikes was also due to be launched in Totnes in 2023, in a scheme which will no longer go ahead.

Devon County Council said it was "urgently considering its options as car clubs and bike hire schemes remain an important part of the integrated transport offer for people living, working or socialising in the city and contributing towards tackling climate change".

It added: "We are already aware of interest from potential suppliers and will be looking to engage with them once we are in a position to do so."

In October 2022, Nic Eversett took over as managing director of Co Cars Limited from founder Mark Hodgson who went "on sabbatical".

Mr Eversett said it had become increasingly difficult for the company to meet its costs - particularly after the pandemic.

"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," he said.

"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."

The firm said it failed to attract sufficient additional funding to keep trading.

Mr Eversett said the company had failed to attract sufficient additional funding to keep trading.

He said insolvency experts Milsted Langdon LLP had been appointed to find a buyer to keep all or part of the business open.

"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," he added.