Startup Unicorn, which offered electric scooters, or e-scooters, filed for bankruptcy. The company had not yet completed the process of manufacturing its e-scooters, and sent buyers an email stating that they will not receive the ordered products and will not have any money back.
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The company was founded six months ago and had as CEO Nick Evans, he is co-creator of the Tile gadget tracker. Evans said Unicorn "totally failed as a company" and even made the first customers pay for the failure. "I find it shocking that someone like Nick Evans, who has name recognition and influence in the tech community because of Tile, would operate in such a fraudulent manner," wrote customer Matt Furhma, who ordered two scooters and suffered a $ 998 loss.
The main reason for the closure of activities is the mismanagement of resources. The company says it has invested a lot of money in marketing, paid ads on Facebook and Google. The hope was to attract more customers, but only 350 scooter units were sold. This meant that the amount needed for the final payment of the products was not left over, nor was it enough to return to the buyers. Each of the scooters cost $ 499.
"We could have continued to move forward and receive more orders, and that would continue to fund the business, and if we did, we could deliver the product, but we could also not be able to sell enough Unicorns, so we would be risking more orders from people. So we took the decision very, very hard to stop. " – Nick Evans, Unicorn CEO
Amid a wave of startups offering electric scooters, Unicorn's biggest draw was its all-white, folding design. It should also be equipped with some extras like bells, GPS, Tile sync, auto lock, user recognition, etc. To see its design and features, watch the promotional video below:
Some of the customers expressed their dissatisfaction with the service. "I'm upset because he basically stole all his customers and is closing without delivering any scooters. This was my daughters' Christmas present and now I can't give him any gifts," wrote Rebecca Buchholtz in an email. for The verge, which also suffered almost a thousand dollars of damage.
Via: The verge