Karshare journey ends as firm runs out of cash and calls in administrators
Karshare, the car rental service which raised nearly £10m from a number of wealthy owners, has ceased trading today after running out of cash.
It has appointed accountancy firm Azets as an administrator, according to Sky News’ Mark Kleinman.
The firm had previously raised close to £10m from a number of wealthy investors, including former Saracens rugby club owner Nigel Wray and the investment company the Founders Factory.
The London-based company – which also operated in Coventry, Bristol and Manchester – previously ran primarily as an airport car rental service and struggled heavily during the pandemic.
It then moved to become a peer-to-peer carsharing platform, for car owners wishing to let out their exiting vehicles for a short period of time.
Karshare’s founder 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.
In a statement on its website, the firm wrote: “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.”
A spokesperson for Azets said: “We are working with the Company to wind down its affairs.”