Liquidators have been appointed to wind-up the company which operates the e-bike for hire scheme in Dundee.
Ride-On Scotland runs the popular scheme which launched in the city in 2020.
It offers consumers a membership model with competitive monthly or annual subscriptions which, together with a specialist app, provided 24/7 access.
Dundee and Leicester city councils awarded contracts to the business to operate the services.
The Dundee scheme suspended its operations in November. At the time Ride-On said this was for a winter break and it would be relaunched in the Spring.
The Leicester business suspended operations last week.
Now Ride-On Scotland has now appointed joint provisional liquidators at FRP Advisory to wind-up the business.
Hundreds of Dundee e-bikes for sale
This means a substantial fleet of 200 e-bikes in Dundee and 300 e-bikes in Leicester are for sale. Charging systems, software and maintenance systems are also available to purchase.
Callum Carmichael, partner with FRP Advisory and joint provisional liquidator, said he hopes an entrepreneur comes forward to acquire the assets.
He said: “Ride-On Scotland had created a sophisticated and customer-focused e-bike hire business that had attracted a substantial membership base and growing interest from city councils across the UK.
“However, the business has been severely impacted by a shortfall in investment leading to unsustainable cash flow problems.”
Nine employees – one in Dundee and eight in Leicester – have been made redundant.
Popularity of Dundee e-bike scheme
Following a month-long trial the Dundee scheme officially launched in December 2020.
Since then around 25,000 people have used the electric bikes.
In 2021, bosses promised to double the number of city e-bikes and charging racks to better link up more communities.
The Dundee scheme, which had 20 charging stations, cost £60 for an annual pass or £12 a month as well as usage charges.
It was sponsored by Dundee-based financial firm Embark.
An Embark spokesperson said: “It is disappointing that Ride On have closed their Dundee e-bike scheme.
“As sponsors of the programme we were pleased to play a part in working to reduce traffic and CO2 emissions in Dundee.”
Ride-On Scotland is ultimately owned by a Spanish company, Ride-On Consulting, who invested heavily in setting up the Dundee operation.
When operations stopped in November, Sara Ylipoti, chief operations officer at Ride-On, told The Courier it would use the winter months to analyse planning sites for new station locations across the city.
She said: “There are various factors which can affect the relaunch. The includes the planning permissions for new sites.
“We will re-open in the springtime and once we have certainty on the exact date we will communicate it with our users.”
Creditors or interested buyers urged to come forward
The scheme’s suspension in November meant pre-paid plans for customers were put on hold.
Mr Carmichael has asked any creditors or interested parties to come forward.
He said: “Should any creditors and/or customer subscribers wish to file a claim we would ask they contact rideonscotland@frpadvisory.com
“We will shortly be selling a modern fleet of urban hire e-bikes and infrastructure that would appeal to an existing operator or an entrepreneur looking to enter the growing urban e-bike hire market.
“We would ask interested parties to contact our colleague Gordon McIntyre on gordon.mcintyre@frpadvisory.com.”
A Dundee City Council spokesperson said: “We have been made aware of the situation and are monitoring developments.”
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