Cargo bike sharing company Cargoroo taken off the streets: bankruptcy is near

The electric rental cargo bikes from the Dutch Cargoroo have been removed from their locations. It is expected that the Amsterdam court will declare bankruptcy this week, writes Utrecht councilor Maatoug (Mobility), who has been informed of this by the company.

Cargoroo was founded in 2017. Their shareable electric cargo bikes are located in public places in nine cities, including Utrecht, Nijmegen and Eindhoven. It was presented as a sustainable and social alternative to the car.

Cargoroo is active across the border in several cities in Belgium and Germany. Customers can no longer rent a bicycle in the app. According to director Jaron Borensztajn

Cargoroo’s fleet has around 700 electric cargo bikes and is aimed at “anyone who occasionally needs a cargo bike”, such as people who have to transport large items or parents who want to take their children with them.

The company employs about 25 people, director Jaron Borensztajn said earlier against Het Parool. In it he spoke about a lost tender in Amsterdam and the possible consequences this could have for the company, which in his words “might not survive at all”.

Utrecht councilor Maatoug regrets the situation. According to her, there is a growing demand for shared cargo bikes in Utrecht and other municipalities. The municipality therefore wants to work with other cities where Cargoroo was active to ensure that they can return quickly.

It has been turbulent in the bicycle industry for some time. For example, e-bike manufacturer Stella Fietsen recently made a fresh start. “It honestly doesn’t surprise me that things are not going well at Cargoroo,” says union director at CNV Kaj Grundemann, who is responsible for motor vehicle companies.

According to him, both small and large players are currently having a hard time. “These companies grew enormously during corona times due to increased demand, they now often have difficulty with this increase in scale and at the same time see demand decreasing. The entire industry is having a hard time,” says Grundemann.

The question remains whether Cargoroo has a chance of a restart. According to Grundemann, the fact that companies such as Stella are making a new start is no guarantee that things will really turn out well. “For example, those stores are closed until March 1, which does not give much confidence.”