UK-based electric vehicle rental firm Onto has officially entered administration, despite securing substantial investments earlier this year. In January, the company successfully raised £100 million (approximately €114 million) from global investment group CDPQ and asset manager Pollen Street, with ambitious plans to expand its electric vehicle fleet within the UK and explore opportunities in other regions.
Onto cites a confluence of adverse market conditions as the primary drivers behind this move, including a significant and unexpected drop in the resale value of used electric vehicles. Additionally, rising interest rates and the tightening of disposable incomes have further exacerbated the company's financial challenges.
Administrators have now assumed control of Onto's business and related subsidiaries, acting as agents of the company. While navigating this period of financial uncertainty, Onto is committed to continuing its service for existing customers. The company's administration team will actively explore strategic alternatives to steer the business toward stability and growth.
For the time being, Onto assures its customers that they can renew their existing hire agreements in accordance with the terms and conditions previously established.
