Exeter council unable to rescue collapsed car share scheme

Exeter City Council says it does not have the money to rescue a bike and car hire company which collapsed earlier this month.

Co Cars and Co Bikes ceased trading after finding itself in financial difficulties.

The firm could no longer cover its costs when demand for its services dropped in the wake of the covid pandemic.

The firm had a fleet of 200 electric bikes and 50 electric or low-emission cars in the Exeter area which were leased to customers by the hour.

Managing director Nic Eversett said the business had been severely affected by the Covid-19 pandemic.

He said changes in travel habits, the cost-of-living crisis and a drop in demand for business travel had significantly impacted revenue.

These factors had been aggravated by high fuel prices and energy costs, contributing to “greatly increased internal costs”, and also blamed vandalism and supply chain issues.

Co Cars is now looking for potential new providers which could keep the scheme operating.

Co Bikes was also due to be launched in Totnes later this year – but the scheme will not now go ahead

Exeter City Council chief executive Bindu Arjoon has ruled out using council tax funds to support the firm.

She said: “Obviously the directors of Co Cars have kept us up to date with what was happening.

“They recognise that we don’t have the financial ability to be able to support them. We have our own challenges.

“There haven’t been any discussions about us taking it on as we simply aren’t in a financial position to take it on.”