The Dutch company Cargoroo, known for its electric shared cargo bikes, filed for bankruptcy at the court in Amsterdam on December 24, 2024.
This news has not only taken users of the popular yellow cargo bikes by surprise, but also cities such as Antwerp and Mechelen, who say they were completely in the dark about the provider's financial difficulties.
The company, founded in 2017, was active in Dutch cities such as Amsterdam, Utrecht, The Hague and Eindhoven. In recent years, Cargoroo also expanded its activities to Belgium, Germany and France, with a focus on cities such as Antwerp, Berlin and Lyon. The shared cargo bikes offered an environmentally friendly and flexible alternative for families, entrepreneurs and city dwellers who do not own their own vehicle but occasionally need convenience.
ambitious growth plans
In December 2022, Cargoroo still seemed to be on the rise. The company raised ten million euros from investors to strengthen its European market position. The plan was to expand further to more German cities, while significantly expanding the fleet in existing markets such as Antwerp and Berlin. In France, Lyon was added to the network of cities where the bikes were available.
According to Cargoroo, the growing popularity of the concept made it possible to triple the number of users in a short time. In the past year, customers collectively covered more than 1,5 million kilometers on the electric cargo bikes. However, this success on paper was not enough to strengthen the financial foundations of the company.
The exact causes of the bankruptcy have not yet been disclosed. Jaron Borensztajn, co-founder of Cargoroo, announced that a trustee will investigate whether a restart is possible.
On Tuesday, the court in Amsterdam declared bankruptcy. Whether the bike sharing provider can make a fresh start is difficult to say. The bikes can no longer be reserved. In some cities, the bikes have already been removed.
Cargoroo, known for its yellow electric shared cargo bikes, has filed for bankruptcy. Co-founder Jaron Borensztajn confirmed this to NOS. The startup, once a pioneer in sustainable urban mobility, has had to temporarily cease its activities due to financial problems. The iconic cargo bikes, which were in fixed locations in neighborhoods in many Dutch and foreign cities, have already disappeared from the streets in several cities.
Users who depended on the cargo bikes for daily or occasional trips reacted with disappointment and concern. “It feels like we’ve been completely sidelined,” an Antwerp civil servant responded to the Gazet van Antwerpen. “We had no indication that things were going so badly for the company.” In Antwerp and Mechelen, the bikes were removed without warning, causing a lot of confusion among residents.
viability of shared mobility
The bankruptcy of cargo roo casts a shadow once again over the sustainability and viability of shared mobility initiatives. Although electric shared cargo bikes such as Cargoroo contribute to reducing car use and CO2 emissions in cities, these concepts remain vulnerable to financial instability.
The idea behind Cargoroo was to make cities more liveable, healthy and safe by offering an affordable and user-friendly alternative to car transport. Despite the popularity of the concept and the growth in the number of users, the company seems to have underestimated the financial challenges of large-scale expansion in multiple countries.
future uncertain
For now, it is still unclear what will happen to Cargoroo. A possible restart would depend on new investors and a clearer revenue model that guarantees financial stability. Users and municipalities are waiting for more clarity about the settlement of the bankruptcy and the possible return of the electric cargo bikes.
The yellow bicycles, once a symbol of a sustainable urban future, have disappeared from the streets for the time being. It is uncertain whether they will ever return, and if so, under what conditions.
