Teleport, a ridesharing app based in Solana, closed down just eight months after launch, claiming that the market was not ready for decentralized ridesharing.
Teleport, a ridesharing startup based in Solana that sought to rival Uber and Lyft, announced its closure because the market isn’t ready for decentralized ridesharing.
In a statement on the company’s website and an X post on January 30, Teleport stated, “This is not the result that we had hoped for.” “We apologize for not being able to make this business work!”
“The rideshare market isn’t ready for a decentralized protocol just yet,” said Teleport engineer Chase in a post on X, adding that the decision to shut down the service “was difficult but necessary.”
Solana-Based Teleport Business Fails
Paul Bohm, the founder of Teleport, described the company as “the hardest thing I’ve ever tried doing.” Teleport raised $9 million in October 2022 and went public in June.
The business stated that it would provide a more “detailed analysis” of the factors that led to its shutdown in the future. Still, it will concentrate on winding down and assisting users in off-ramping their private keys and USD Coin balances until February 28.
By charging a 15% cut on each ride, as opposed to Uber’s 25% to 30%, and giving drivers the option to receive USDC or currency using Apple Pay, Teleport attempted to set itself apart from Uber.
According to Teleport, which launched on June 1 and completed 1,321 journeys between June 1 and November 24, with 13,834 individuals signing up, its rides were constantly less expensive than Uber’s.
According to the report, during the week of November 11–17, 178 drivers were online, more than tripling the number from the week before.
Before its demise, two of the most popular cities where Teleport’s services were utilized were New York City and Austin, Texas.
According to 41 reviews on the Apple App Store, several of Teleport’s lowest-rated users expressed dissatisfaction over the lack of drivers.
The TRIP Rideshare Protocol, operated by the Decentralized Engineering Corporation, used Teleport as its mobile client.
Since the beginning of September 2016, when Arcade City allegedly opened but failed to get a single trip in the first two weeks, decentralized ridesharing applications have tried to overtake Uber.
