RideLink shutting down!

16
Found 27th Nov 2017Edited by:"ajavaid92"
I invested during their recent crowdfunding campaign and I've now just received an email that they're shutting down due to competition. Gutted with the lost investment (hey ho, it is what it is). However, there appears to be a lot of angry crowdfunding investors on Seedrs at the moment due to the way this has played out. A million pound crowdfunding campaign that ended 3 months ago and suddenly they’re closing down. All the updates in the 3 months posted by RideLink have been encouraging and positive and hence why it’s come as shock to many when they’ve suddenly, out of nowhere, sent this closing down email. A lot of cynics about...

Here's the email:

"This is an email I had hoped to never have to write.

When Robert and I started RideLink three years ago, our ambition was to build an international platform to change the way that vehicles were used, with less wasted capacity and more shared use, bringing together people in communities to create something that improved the lives of car owners and non-owners alike.

By every measure, we made tremendous progress towards that goal. RideLink now has over three thousand cars available and nearly thirty thousand registered users across 3 countries. Our comprehensive insurance coverage set a new standard in the industry, and our ever-evolving approach to vetting renters and vehicles helped ensure most of our owners and renters never had to use insurance at all. I feel honoured that RideLink is now the UK's favourite p2p car rental service, with our community's vehicles serving over a quarter century of rental time in the last year, alone.

Despite these successes, however, I am sorry to tell you that we have failed to secure the additional investment we needed to continue operating the business. Different investors had different specific reasons, but fundamentally the common thread was a competitive concern. The two largest and best funded p2p competitors have recently begun focusing on the UK, and with well over a hundred million pounds of funding between them, we could not find an investor that was willing to fund us to go up against them, despite our positive track record to date.

At this point, and with our options to raise capital exhausted, we unfortunately have no choice but to shut down the business. We will stop accepting rentals this coming week. After soliciting bids, we have accepted an agreement to partner with Drivy to promote them as the preferred replacement for our service, and have arranged some incentives for our members to move to them. The funds we receive for this will be primarily used to cover the costs of winding up the company, but any remaining money will be distributed back to shareholders, excluding Robert and myself. We expect to meet all of our current financial obligations to our members, employees, and suppliers.

I understand that this will be upsetting and disappointing to you, and that you may have questions or comments for me. You are welcome to send them to me directly at xxxxxxxxxxxxx or if you prefer to speak to me live, contact me and we can arrange a time to speak by phone.

Lastly, I want to thank you for your support over not only the past year since our campaign, but since many of you are also long-standing members, over the past three years. It is an understatement to say I wish the final result were different, but I could not have asked for a more supportive community.

Sincerely,
Alexander"
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mutley15 m ago

risk of investing in something you have little knowledge about or control …risk of investing in something you have little knowledge about or control over. put it down to experience and move on. choose something safer in future and do your research before investing.


Sayeth the expert.
16 Comments
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Please don't overload the description box with details, it slows the website down!
Original Poster
Graham19796 m ago

Please don't overload the description box with details, it slows the …Please don't overload the description box with details, it slows the website down!


Sorry, was a bit busy at the time. Just updated with some further info now.
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ajavaid9214 m ago

Sorry, was a bit busy at the time. Just updated with some further info now.


Wait, you added mor info?
I am old and grumpy and have never liked crowd funding. This is why.

Im sure the main guys have made a fair few quid out of this.
DT8927th Nov 2017

Wait, you added mor info?


It was blank before, now he's moaning because he doesn't get how crowd funding works.
Edited by: "Segata-Sanshiro" 28th Nov 2017
I don't really see the problem? Investing isn't always going to make you money and you should never invest more than you can afford to lose.

It isn't just crowdfunding that can go belly up, stock market shares can also fold.
In other words "We've made a quick buck, Screw you all....".
.MUFC.24 m ago

In other words "We've made a quick buck, Screw you all....".



That would be the very cynical interpretation.
CoeK4 m ago

That would be the very cynical interpretation.


risk of investing in something you have little knowledge about or control over. put it down to experience and move on. choose something safer in future and do your research before investing.
mutley15 m ago

risk of investing in something you have little knowledge about or control …risk of investing in something you have little knowledge about or control over. put it down to experience and move on. choose something safer in future and do your research before investing.


Sayeth the expert.
Original Poster
I am well aware of the risks of crowdfunding, and like I said, I am gutted about the lost investment, as you would be with any investment. It is what it is and I’m not too bothered.

The reason I posted was because it’s sad to see RideLink go down as I rather enjoyed the service they provided. Been using them since they started trading and therefore it’s disappointing to see them go.

Also, as to why there are a lot of angry investors, it’s pretty simple to see why. RideLink asked for a substantial sum of money during their crowdfunding campaign. This was over 1 million pounds and the campaign was only 3 months ago or so. The fact they’ve gone belly up in 3 months with such a large investment will always certainly raise eyebrows...
ajavaid9212 m ago

I am well aware of the risks of crowdfunding, and like I said, I am gutted …I am well aware of the risks of crowdfunding, and like I said, I am gutted about the lost investment, as you would be with any investment. It is what it is and I’m not too bothered.The reason I posted was because it’s sad to see RideLink go down as I rather enjoyed the service they provided. Been using them since they started trading and therefore it’s disappointing to see them go.Also, as to why there are a lot of angry investors, it’s pretty simple to see why. RideLink asked for a substantial sum of money during their crowdfunding campaign. This was over 1 million pounds and the campaign was only 3 months ago or so. The fact they’ve gone belly up in 3 months with such a large investment will always certainly raise eyebrows...


link says it all really. highly risky investment so you have to know what you are doing. it would appear to be regulated? if so, they can't line their pockets and run off as this would be fraud.

fca.org.uk/con…ing
mutley140 m ago

risk of investing in something you have little knowledge about or control …risk of investing in something you have little knowledge about or control over. put it down to experience and move on. choose something safer in future and do your research before investing.


Not a investment more a charity case in hopes of a reward for your enthusiasm for whatever it is but given in hopes of making whatever it is a reality. Crowd funding never "profits" the investor.
ajavaid9232 m ago

I am well aware of the risks of crowdfunding, and like I said, I am gutted …I am well aware of the risks of crowdfunding, and like I said, I am gutted about the lost investment, as you would be with any investment. It is what it is and I’m not too bothered.The reason I posted was because it’s sad to see RideLink go down as I rather enjoyed the service they provided. Been using them since they started trading and therefore it’s disappointing to see them go.Also, as to why there are a lot of angry investors, it’s pretty simple to see why. RideLink asked for a substantial sum of money during their crowdfunding campaign. This was over 1 million pounds and the campaign was only 3 months ago or so. The fact they’ve gone belly up in 3 months with such a large investment will always certainly raise eyebrows...




They will have had bills to pay, wages etc. It is the same thing when a small cap does a share issue and then folds.

The investors might get something back but generally stock holders are last in line.
I built up a small business renting out my cars on Ridelink, It was always popular and the past 12 months the business i got from them overtook the amount of business i got from easyCar Club. so i was shocked to find they have ceased trading overnight. I have 5 cars and over 150 rentals under my belt with them, but the new club they are suggesting won't take cars that are more than 6 years old.. all mine are 7 or more.. so unless easyCar can take up the gap in this market (low cost budget rental cars). i'm screwed.
does seem strange that 3 months after securing a million, its gone tits up
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