Unicorn is shutdown after spending too much money on Facebook ads, a startup for electric scooters.
Customers got an email from founding company Nick Evans stating he was’ very sorry,’ trying to offer partial reimbursements for Unicorn’s assets.
According to The Verge, the Texas-based company only sold 350 commuter scooter of its $699 (£ 531). The speeds are 15 mph and the distance is 15 milles.
Crunchbase starter tracker said Unicorn just earned $150,000.
“We have run out and shut down operations immediately” the email says, “I am sorry to write this letter.
“The cost of ‘ Facebook and Google ads, loan payments, and other costs ‘ was paid by the company faster than Mr. Evans had expected through its financing.” A major proportion of the revenue went towards paying for Facebook ads to transport the website traffic, “said the email.” We don’t even have the resources to provide Unicorns or refunds as we are totally out of funds.
And Rebecca Buchholtz wrote that she was “heartbroken” after receiving an email as she had ordered her daughter a Christmas scooter The company has not been on Facebook or Instagram since 20 June.
It was, however, on its website four weeks ago, on 15 December, to ship scooters, and adding customers would have their Christmas and Hanukkah orders in good time.
Electric scooters are popular around the world but are illegal on British roads and pavement.