The chief executive of Exeter City Council says it doesn't have the money to revive a local bike and car hire company which has collapsed.

Co Cars and Co Bikes, which had an e-bike rental station in Exmouth, stopped trading last week after getting into financial difficulties when demand for its services dropped and it couldn't cover its costs.

It offered around 200 electric bikes and 50 electric or low-emission cars, mainly around Exeter, which were leased rather than owned directly, to people who rented them by the hour.

Explaining its demise last week, managing director Nic Eversett said in a statement: "We were severely affected by the suspension of our services for long periods of time during covid.

"Post-covid, changes in travel habits, exacerbated by the cost-of-living crisis and drop in demand for business travel, have significantly impacted utilisation and revenue."

He added: "These factors have been aggravated by high fuel prices and energy costs, contributing to greatly increased internal costs" and also blamed vandalism and supply chain issues.

Mr Eversett said it was "looking for potential new providers who could keep the cars and / or the bikes operating into the future as we passionately believe these services are an essential part of a low carbon, integrated public transport network."

But city council chief executive Bindu Arjoon has ruled out using council tax money to rescue the firm.

"Obviously the directors of Co Cars have kept us up to date with what was happening. They recognise that we don't have the financial ability to be able to support them. We have our own challenges," she said.

"It's a hugely valued service and everyone is really upset about the loss of it."

Ms Arjoon added: "There haven't been any discussions about us taking it on as we simply aren't in a financial position to take it on.

"Obviously, I don't know what the county council's position is but I imagine similarly, but certainly a sad loss I think for the city."