Sustainable last mile deliveries specialist Zedify falls on wrong side of rapid drying up of VC funds

Electric cargo bike logistics firm, Zedify, has gone into administration after failing to bag new funding.

The company, which includes Zara among its partners, operates from ten logistics hubs across the UK, with the latest launched in Birmingham in late 2024.

It had planned be active in 50 UK cities in the next few years, and laid claim to the UK's largest network of its kind.

Ravi Patel of Interpath, which is handling the insolvency process, comments: "Zedify was considered a pioneer within the logistics market, being the UK's first cargo bike delivery service with a zero-emission, last mile delivery model. We are working to explore all options and are seeking buyers for the business and its assets, including its fleet of electric bicycles and their associated intellectual property, as well as the Zedify brand."

Last year, Zedify secured a £4 million investment from Barclays Sustainable Impact Capital, Mercia Ventures which was investing from its own funds and from the Midlands Engine Investment Fund (MEIF), and Green Angel Ventures.

Rob King, Co-founder and CEO at Zedify, commented at the time: “We are seeing a real appetite from leading retail brands and UK wide businesses looking to transform their last mile logistics and invest in more sustainable delivery models, which is why we have ambitious plans to triple in size this year. This investment will be paramount to that growth, helping us scale to meet the needs of our rapidly expanding customer base.”

In a LinkedIn post, Ben Knowles, CEO and Co-founder at rival firm, Pedal Me, said: "Devastating news - my thoughts are with Rob King and the team. They've done an incredible job of bringing cargo bike logistics to huge scale companies that otherwise would never have considered it, and helped draw attention to the sector."

"I can't help feeling that they were extremely unlucky to fall the wrong side of the rapid drying up of VC funds for their strategy - which was aggressive, courageous, and absolutely could have worked if things had been just a bit different. If you are a Zedify team member and want to stay in the sector - reach out to discuss as we are recruiting very quickly and we're keen to make sure that good people find good places to work."

UPDATE: This morning, Monday, 3rd February, Zedify posted the following on its LinkedIn page:

“It is with the heaviest heart that we must announce that our journey might be coming to an end. We wanted to take the opportunity to thank you for your endless support, for believing in us, and being a massive part of our mission to create better deliveries for better cities.

In 2024, we saw the beginnings of a large-scale transition to low carbon deliveries as major brands and carriers put their faith in the Zedify model. Our riders and drivers have worked so hard, travelling nearly a million kilometres, almost 80% of which was on cargo bikes, saving a huge 292 tonnes of CO2e.

We have pushed and pushed, and exhausted every possible avenue to keep Zedify going on a national level, but this time it just hasn’t been possible to find the funding. However, our team is working hard to try and salvage what we can, and we’re delighted to be able to let you know that we remain open for business with our local accounts in Cambridge, Edinburgh, Bristol, Brighton, Norwich, Glasgow and Plymouth.

If you’re expecting a parcel from Zedify, it is best to contact the retailer directly to get an update on your delivery. We’re so sorry for the inconvenience. Finally, we just wanted to say - we know this isn’t the end for cargo bike deliveries.

In 2025, there are big carriers committing millions of pounds of investment in their transition to using cargo bikes at scale to deliver in cities; they’re doing that because time and time again cargo bikes have proved to be economical, sustainable and better tools to help provide a great delivery service when it comes to the urban last mile.

That is quite a different picture to the world of urban deliveries when Zedify started in 2018, and we are very proud of our part in getting vans off urban roads and helping create cities that feel fit for the future. Once again, thank you for all your support in making this happen.”

2024 RTIH INNOVATION AWARDS

Green retail was a key focus area at the sixth edition of the RTIH Innovation Awards.

The awards celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter.

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering.