Cargo bike sharing company Cargoroo declared bankrupt: ‘Extremely unfortunate’

• Nina Bogosavac

  editor Economics

Until a few days ago it was still exciting: would Cargoroo be taken over and thus saved from bankruptcy? There was an interested party for the Amsterdam startup that has been renting out electric shared cargo bikes in public places since 2018.

But the deal fell through at the last minute. The party would have found it too exciting and Cargoroo could no longer meet its financial obligations. “And then it ends,” says director Jaron Borensztajn. His company was declared bankrupt today by the Amsterdam court.

In recent days, bicycles have disappeared from the streets of cities such as Utrecht and Eindhoven. “It’s a shame,” Borensztajn summarizes. “And also distressing. For us, our employees, but also for the users. People were genuinely enthusiastic, and often also dependent on our bicycles.”

Seven years ago, Borensztajn founded the company with Erik de Winter and Jelle Maijer, only the latter of whom is still on the board with him. Looking back on the period before the bankruptcy, he summarizes: “We worked very hard with everyone, but unfortunately it didn’t work out. It’s a huge shame.”

He is clear about the reasons. The shared mobility industry is developing rapidly and is highly dependent on investors. This also applies to Cargoroo. “The use of shared cargo bikes was good, but the business case is quite difficult,” says Borensztajn. By this he means: it is a difficult revenue model.

Lenders needed long-term security. When that was missing, they dropped out. Something that didn’t come out of the blue. Borensztajn warned as early as February in Het Parool that the lost cargo bike sharing permits in Amsterdam could be the final blow for the company.

At the beginning of this year, the company made an investment round of 800,000 euros. A day later it lost the permits to rent out in Amsterdam. According to Borensztajn, two investors withdrew immediately afterwards. Ultimately, that event “certainly contributed” to the bankruptcy, Borensztajn says. But he is also real. “It’s entrepreneurship it’s all in the game.”

He points out that there are also parties that were supportive of his company, such as the municipalities of The Hague and Utrecht. The Utrecht councilor Maatoug (Mobility) regrets the departure of Cargoroo. According to her, there is a growing demand for shared cargo bikes.

The municipality therefore wants to work with other cities where Cargoroo was active to ensure that they can return quickly. “Hearing something like that is very nice,” says Borensztajn. “Only, we would have preferred to receive more support sooner.”

And now, just before Christmas, the cards have been shuffled and a curator has been appointed. For Borensztajn and his colleagues, there is still a lot of work to be done in the coming months in the settlement of the bankruptcy. Its approximately 20 employees are entitled to benefits.

He looks back on the past years with pain, but also with pride. “We set up this company with great enthusiasm. We have also achieved something: we put shared cargo bikes on the map. For us, the end has come, but the shared cargo bike has a future. With or without a restart.”