AM Online

Car sharing club is back in business

Car sharing club Whizzgo, which went into administration earlier this month, has relaunched as Whizzgo Europe, thanks to a cash injection from new owners.

The loss-making company called in KPMG on August 4, due to a “critical cashflow shortage”.

While it continued trading, KPMG sealed its sale to investors Nick Evans and Gareth Dunn, who form the board of Whizzgo Europe alongside original managing director Charlotte Morton.All 35 staff have transferred.

Morton opened 14 Whizzgo operations in UK cities since its 2004 launch, backed by venture capitalist Viking.

These allow city residents to book occasional use of a car – minimum rental is one hour.

But the business has never achieved profit.

Annual accounts to March 2007 showed an operating loss of £486,522 from £283,576 turnover.

Commercial director Steve Gregory said the new owners want it to pursue the same strategy of launching car-sharing operations in other key cities, but are willing to give it more time.

Target cities include Glasgow, Cardiff, Chester and Oxford. However a review is underway to decide the timings of each expansion.

If you are not a registered user your comment will go to AM for approval before publishing. To avoid this requirement please register or login.

Comment as guest


Login  /  Register

Comments

No comments have been made yet.