B2B – News | Sources from multiple New Zealand news outlets report that UBCO, a company based in Tauranga that develops electric 2-wheeler utility vehicles, has gone into receivership. This comes just months after the company announced a significant partnership with Australia Post.
After being appointed as receivers, Stephen Keen and David Ruscoe from Grant Thornton announced the termination of all employees and cessation of trading due to insufficient funding. Their statement mentioned that they are open to selling the business and are currently seeking interested parties. However, no information was given regarding the company’s financials or any outstanding debts.
According to Mark Phillips, who was the Managing Director of UBCO Australia from March 2020 until September 2022, the company’s failure can be attributed in part to its avoidance of military sales.
“It was a disappointing call,” Phillips says. “We might not have won the contract, but I saw it as a missed opportunity that highlighted broader issues in the company.” He also mentions that UBCO’s downfall can be attributed to its quick expansion across the world, lack of direction, and excessive management structure.
UBCO first caught the public’s eye at Fieldays in 2015 when they showcased their quiet, easy-to-maintain utility bike designed for use in agriculture. As time went on, UBCO expanded their product line to include faster models suitable for road use and integrated cloud-based tools to manage fleets. They had plans to release a quad bike, but it ultimately never came to fruition.
TPK, UBCO’s main manufacturing partner in Taiwan, was the largest shareholder before the company went into receivership. TPK had acquired a significant stake in 2021 and held roughly 40% of the company by the time it collapsed. GD1, a venture capital firm based in Auckland, held approximately 21%, while smaller investors from the Snowball Effect crowdfunding platform also had ownership shares.
During the month of August in 2024, UBCO made a declaration that it had successfully negotiated a contract to provide Australia Post with a total of 175 electric motorcycles. This initial order could potentially lead to more in the future, as these bikes were intended to supplement the postal service’s large fleet totaling 10,000 vehicles. Additionally, a smaller trial program was set up with NZ Post, and some bikes were being tested out for pizza deliveries at Domino’s.
Hutaff had mentioned that they were in talks with NZ Post about incorporating or replacing the Paxster vehicles for local postal deliveries, but the receivership halted those plans for expansion.
Source: The New Zealand Herald – New Zealand Autocar Magazine
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