Electric car subscription service, Onto has collapsed into administration earlier this week, following on from mounting debt and multiple rounds of funding. The company was owned by Legal & General (L&G) and they have earlier this week, pulled the plug on the company.
Up until going bust, Onto had amassed a total of 7,000 EVs on its fleet and 20,000 customers. The company allows customers to essentially subscribe a new car with no deposit and a month-to-month commitment. Cars from Tesla, Fiat, Vauxhall and others were available.
“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.”
Gavin Maher – Joint Administrator
L&G poured £22.5m into the company in-between May and June this year and $60m around a year ago. In total, Onto has raised over $350m since starting out in 2018.
Given that the company has 7,000 EVs in its fleet, they’ll be bids taking place for the leftover assets – so at some stage, we could see some used EV bargains on the market.