Electric car subscription firm Onto, which has a fleet of 7,000 EVs and a customer base of 20,000 subscribers, has collapsed as it ran out of cash.
Teneo Financial Advisory was appointed as administrators yesterday and it said the business operations will be maintained while it explores strategic options for the business.
Onto, launched in 2017, offered customers access to electric cars on an all-inclusive monthly subscription. Its website is still marketing offers on Teslas, Fiats, Peugeots, Hyundais, Volkswagens and Audis.
Gavin Maher, joint administrator, said: “Onto has suffered from the steep fall in electric vehicle residual value in the first half of 2023, rising interest rates and the squeeze on disposable income and was unable to secure additional funding from its shareholders.
“After entering administration, Onto will continue to serve existing customers as the administrators explore strategic options.”
Maher and Jonathan Lees of Teneo Financial Advisory were appointed as joint administrators of Onto Holdings Limited and certain subsidiaries.
Based in Warwick, the business had grown since launch to have more than 7,000 EVs in its fleet by the start of 2023, and it introduced more than 20,000 people to electric cars via a subscription, said the administrators.
Sky News reported earlier this year that one of Onto’s investors, Legal and General, had told the company it would offer no more funding after investing £22.5m in May and June, on top of previous funding.
Onto held a £60m funding round in 2022, at which it was described by Legal and General as “an ambitious company with a talented management team that will play a vital role in accelerating the transition to electric vehicles”.
Onto’s website states: “There’s an electric car for everyone. Onto makes the switch radically simple with our all-inclusive car subscription that includes insurance, servicing, and public charging (unless you select a no-charging subscription). Browse our curated selection and find your perfect match, delivered to you in just 72 working hours across the UK.”