They raised money and spent: in the USA, a project to create electric scooters failed

They raised money and spent: in the USA, a project to create electric scooters failed

December 10, 2019 0 By autotimesnews

In the United States, Unicorn raised money to produce electric scooters, but closed after it spent investor money on Facebook and Google ads.

It is reported by TJournal. The publication notes that the company received a total of 350 orders.

In a message to their clients, the startup management said that they did not have enough money to deliver even one electric scooter, the price of which was $ 699. Unicorn CEO Nick Evans noted that the company “completely failed as a business.” According to him, the startup “distributed the costs of failure” to its customers, “who believed in them,” so they will not reimburse the cost of orders.

The startup’s guide notes that Unicorn spent the majority of its money on marketing and advertising on Facebook and Google. The company transferred another part of the money to the partner as an advance for the production of scooters, which “cannot be returned.”

The head of the company noted that they could continue to take orders and, perhaps, could fulfill them, but decided not to risk it. Evans also complained about the high cost of advertising, which “does not allow you to create a sustainable business.”

In addition, with the onset of winter, it has become increasingly difficult for companies to sell electric scooters. Unicorn is now planning to sell the remaining assets in order to at least partially refund the money to customers, but Evans warned in advance that “this is unlikely.”

“It amazes me that people like Nick Evans, who are known in the industry, can act in such a fraudulent way,” said Matt Furman, one of the company’s customers. Another client complained that he had spent $ 998 on two scooters and called the head of the company a “thief.”