An electric scooter company, Unicorn will shut down because it spent too much money on Facebook adverts.
An email from founder Nick Evans to Customers said that he was “very sorry” and was trying to sell Unicorn’s assets to offer partial refunds.
The Texas-based company sold just 350 of its $699 (£531) commuter scooters, according to The Verge. The scooters have a top speed of 15mph and a range of 15 miles.
Start-up tracker Crunchbase says Unicorn has raised only $150,000.
“It saddens me to write this letter but we have run out of funding and are shutting down operations immediately,” the email says.
“We, unfortunately, do not have the resources to deliver your Unicorns nor are we able to provide refunds, as we are completely out of funding.”
The cost of “Facebook and Google ads, payments for loans, and other expenses” depleted the company’s funding quicker than Mr. Evans anticipated.
The email continues: “a large proportion of the revenue went toward paying for Facebook ads to bring traffic to the site,”
“Unfortunately the cost of the ads were just too expensive to build a sustainable business.”
“This is infuriating and I am not happy with this company,” customer Juliette Lopez posted on Facebook.
Also Read:
Facebook To Allow Users Transfer Photos to Google Photos
Why Is A Cow Wearing A VR Headset?
Tesla Model 3 Wrecks Police And Civilian Cars On Autopilot
Another customer Rebecca Buchholtz wrote that she was “heartbroken” after receiving the email. She had ordered her daughter a scooter for Christmas.
The company has not posted anything on Facebook or Instagram since 20th June 2019.
However, four weeks ago it wrote on its website it was on track to deliver the scooters on 15th December 2019. The post reads that customers would have their orders in time for Christmas and Hanukkah.
Electric scooters are popular around the world. They are although illegal to use on UK roads and pavements.
Make sure to follow Plat4om on Twitter @Plat4omLive, on Instagram @Plat4om, on LinkedIn at Plat4om, and on Facebook at Plat4om. You can email us at info@techtalkwithtdafrica.com. Also, don’t forget to subscribe to our YouTube channel HERE.