Electric mobility has taken the world by storm, and the hype surrounding all things electric is undeniable. The push for cleaner, greener, and more sustainable transportation has undoubtedly driven innovation, resulting in a wide variety of EVs hitting the roads.
But the EV craze isn’t limited to just electric cars. The two-wheeled segment has also seen a surge, with everything from high-performance electric motorcycles to urban-focused e-bikes making their mark.
Out of all the names that have managed to make it big in the industry, New Zealand-based startup UBCO just has to be one of them. It came into prominence thanks to its 2x2 all-wheel-drive e-bikes that were particularly versatile, both in and out of the city. We’ve talked about the 2x2 on multiple occasions, and how it seemed like a solid, versatile two-wheeler ideal for both work and play. Indeed, things were looking up for UBCO, as it struck a high-profile deal with Australia Post, delivering 175 UBCO Duty e-bikes for mail deliveries across both urban and rural terrains.
But despite the company’s success, it has somehow managed to find itself in hot water. And the company's future looks bleak.
UBCO’s funding has reportedly dried up, and the startup has now entered receivership, casting a gloomy shadow over its future. For many, the company’s announcement came as a big surprise, especially given the ongoing contract with Australia Post. Under receivership, all employee contracts have reportedly been terminated, and company operations have been suspended—a situation that totally sucks for everyone involved.
So, what exactly is going on? Clearly, UBCO’s having money issues, despite managing to raise $70 million in investment funding and landing that high-profile deal with Australia Post. The company’s debts haven’t been fully disclosed, but reports suggest that one of its biggest creditors is Callaghan Innovation, a New Zealand Crown agency, to which around $400,000 is owed. And given that Crown agencies like Callaghan are directly tied to the government, it’s more than likely there isn’t any wiggle room for UBCO to pay off its debts.
But all isn’t over just yet. You see, receivership and bankruptcy aren’t the same thing, though receivership often leads to bankruptcy. In UBCO’s case, a third-party receiver, Grant Thornton, has taken control of the company’s assets and operations to manage its debts. It’s just depressing that, in order to do this, all operations had to be suspended, and even worse, all company employees were let go.
What makes this so scary is that UBCO isn’t the only one knocking on death’s door. Several other e-mobility startups that had the potential to revolutionize the way we moved have suffered a similar fate. I’m sure a lot of you remember CAKE, the Swedish EV motorcycle brand with a knack for ultra-clean, utilitarian designs. That company also went into receivership but has since bounced back under new ownership, with plans for the future. Fingers crossed that UBCO gets this lucky, as RideApart's Jonathon Klein loved his time with his UBCO, even figuring out how to do an Akira slide in his backyard.
Sadly, many others weren’t as fortunate—names like Sondors, VanMoof, and even Energica have had their assets liquidated to pay off creditors.
So yes, while the EV landscape abounds with opportunity, it is also fraught with risks. Things like high development costs, supply chain challenges, and of course, the never-ending pressure to innovate, be different, and stand out from the crowd.
What's next for UBCO? Well, quite frankly, it’s hard to say. The receivership process could result in a buyout and an eventual relaunch under new ownership—the most ideal scenario. However, as mentioned earlier, many other companies ended up having to liquidate their assets, ultimately marking the end of the road. Here’s hoping for the best, and that UBCO somehow manages to make it to the other side.
Sources: New Zealand Herald, The PACK
