National car sharing platform, Karshare, ceases trading

Karshare, the peer-to-peer car sharing service with operations in most major UK cities, has closed down after running out of funds.

The venture was set up in 2016 by Andy Hibbert and was initially focused on airport car rental.

However, following the almost total shutdown of airports during pandemic lockdowns the business sought to switch its model and offer car sharing facilities, utilising under-used vehicles in cities and suburbs.

Among its high profile backers was former Saracens rugby club owner Nigel Wray.

The company also raised cash through the Seedrs platform. It is estimated Karshare raised £10m since its launch.

But a combination of the cost of living crisis, which has impeded demand, and a dearth of new investors, has led to the company’s demise. Accountancy firm, Azets, has been appointed as administrator.

The company has facilitated around 20,000 journeys since the beginning of 2021.

A message on the company website, titled Goodbye from Karshare, reads: “We’re extremely sad to announce that Karshare’s journey has come to an end and that we’re no longer operating.

“Thank you to everyone who helped drive more than 20,000 rentals in shared cars – that’s 20,000 journeys made with cars that would’ve likely otherwise been sitting idle.

“Everyone within our community has made a great difference by contributing to the development of the sharing economy. Choosing to share vehicles reduces carbon emissions, promotes a greener future, and creates a more sustainable world.

“A heart felt thank you to everyone who has joined us on this journey and for your continued support and belief in Karshare’s mission. Although it’s the end of the road for us, we hope you continue to champion car sharing in your community and carry on the ethos of doing more, with less.”

Andy Hibbert told Sky News: “Facing into unforeseen headwinds requires investment – a necessary oxygen providing time to push through.

“Investor sentiment remained cautious given continued uncertainties, and these extended to Karshare where the increased cost of living lowered rental demand.

“I would like to thank everyone who has backed and supported Karshare over the years, who believed in the idea, and inspired us to succeed, and a special thanks to the Karshare team and partners who worked so hard to make it possible.”