Connect with us

Business News

Unicorn goes extinct – is the scooter movement in trouble?

(BUSINESS NEWS) The scooter war may be coming to an end with many companies, like Unicorn, closing their doors and refusing to fulfill orders and/or refund customers.

Published

on

unicorn scooters

Scooters, scooters, scooters – it seems like that’s all us city-dwellers have heard about these past 3 years.

Since the inception of rental scooters in Santa Monica in 2017, more and more companies have thrown their hats into the ring, resulting in intense competition. Through this brand rivalry, many of the scooter-centric companies have gone bust, including the most recent shut-down, Unicorn.

Unicorn is a newer brand of electric scooters, under the brand name Unicorn Rides. The supposed up-and-coming scooter company was created by well-known tech CEO, Nick Evans, the maker of the ever-popular tracking device, Tile.

Unicorn was meant to be a product that wowed customers, with special bells and whistles not seen before with other scooter brands. The company boasted a unique, rugged and waterproof battery, enhanced motor output for riding through hilly areas, an integrated smartphone app, and even extra storage for grocery shopping and other errands.

But when Unicorn sent a very worrisome email to a large portion of its customers last week (350 paid-up, un-served customers), it quickly became clear that the company wasn’t going to live up to the hype. In fact, it was obvious that the company wouldn’t live any longer at all.

The gist of the email included an announcement that the company would be shutting down, strictly due to finances. Apparently, the company spent the majority of it’s money on Google and Facebook ads, as well as loan repayments which, they explained, resulted in their inability to fulfill existing orders or refund anyone who had already purchased the $699 device – a huge blow to customers.

In the email, Evans stated that they actually could have continued to press forward with production and fulfillment, and that it may have been enough to fund the business, but they ended up opting against this route as a lack of sales could have resulted in future customer upsets.

In the same email, Evans went on to more deeply explain their money trouble: “Unfortunately, the cost of the ads were just too expensive to build a sustainable business. And as the weather continued to get colder throughout the US and more scooters from other companies came on to the market, it became harder and harder to sell Unicorns, leading to a higher cost for ads and fewer customers.”

This explanation isn’t leaving a better taste in their customers’ mouths though. Buyers like Rebecca Buchholtz are very unhappy, and rightfully so. Buchholtz told The Verge “I am upset he basically robbed everyone of his customers and is closing without delivering any scooters.”

It’s important to mention that Unicorn did not go the typical funding route for its product, either. Instead of just using angel investors and investment firms, Unicorn chose to go a different route – scooter pre-orders. Crowd-funding through pre-orers is not a completely unheard of avenue, though. Unagi Scooters, for example, successfully funded its first campaign for its new scooter (appropriately named Unagi) on Kickstater in 2018, raising over $242K. The main difference here is that Unicorn’s “pre-order” was not through a platform such as Kickstarter, which actually protects buyers from incidents like this.

In his email, Evans alludes that they’re still trying to refund (at least partially) their customers, but he also specifically said that it “looks unlikely”. Their website is still working, but pages like their shipping update and pre-order cancelation pages, which still show up in Google’s search results, are now dead links, resulting in 404 errors. This makes for a pretty clear statement on what’s to happen with the company’s existing customers.

unicorn 404

But it’s not over yet! If you are an affected customer of Unicorn’s, don’t fret. Most banks have fraud-protection and buyer-protection, so if you pre-ordered using a credit or debit card, we recommend contacting your bank.

Rachael Olan is a Texas-based Staff Writer at The American Genius and jack-of-many-trades. She's well known for her abilities in Marketing, Sales, and Customer Service, with a focus on SaaS and eCommerce businesses. Outside of writing, Rachael spends much of her time with her swarm of pets, including a 70 lb tortoise named Frankie.

Business News

AdvoCare MLM was painted as a pyramid scheme! Well color me surprised

(BUSINESS NEWS) AdvoCare is the most recent case of an MLM being called out as a pyramid scheme by FTC, but there’s plenty more MLMs where that came from…

Published

on

AdvoCare business structure

It’s always a good day when an MLM (multi-level marketing business) actually suffers legal repercussions. Granted, these days don’t happen nearly as often as we’d like – MLM CEOs have historically had deep pockets and a far reach – which means it’s all the more reason to celebrate when one gets called out.

Today’s culprit is AdvoCare, a Texas-based “wellness” company. AdvoCare has been fined $150 million by the FTC (Federal Trade Commission) for operating a pyramid scheme. The company, as well as a few of its top influencers, have been misleading people when it comes to how much money they could earn. This is pretty typical behavior for MLMs in general, though many are careful to couch your potential earnings in vague terms.

For the record, the majority of users lost money, and most who managed to turn a profit made a maximum of just $250. I say ‘just’ because it’s hard to know how long someone would have had to work to not only break even, but manage to turn a profit. MLMs make big claims about earning money, but when you have to pour a hefty sum of cash into the products, it can take a while just to break even.

That’s why many MLMs, including AdvoCare, push contributors to recruit, rather than sell the product. And if you’re thinking that sounds like a pyramid scheme, you’re totally right. This method of putting recruiting first is part of the reason AdvoCare has gotten in trouble with the FTC.

In response, AdvoCare is moving away from multi-level marketing sales and pivoting to selling products directly to retail stores, which in turn sell to customers.

Now, with AdvoCare’s downfall, don’t be surprised if other MLMs insist that they’re different because they haven’t gotten in trouble with the FTC. In fact, plenty of MLMs are quick to tell you that they’re totally legal and totally not a pyramid scheme. Sure, Jan.

First of all, if there’s a big focus on recruiting, that’s obviously a big red flag. There are plenty of pyramid scheme MLMs out there that just haven’t gotten caught yet. But there are other sneaky ways an MLM will try to rip you off. For instance, some companies will insist you buy tons of product to keep your place, and that product can be very hard to unload. Not to mention, many of the products MLMs tout are subpar at best.

AdvoCare getting called out by the FTC is a great start, but MLMs seem kind of like hydras. Cut down one and two more seem to spring up in its place. So be vigilant, y’all. Just because an MLM hasn’t gotten caught yet doesn’t guarantee it won’t still scam you out of your hard earned cash.

Continue Reading

Business News

Bose is closing their retail stores, but we haven’t heard the last of them

(BUSINESS NEWS) Over the last 30 years Bose has become so well understood by consumers that they don’t even need retail stores anymore. We hear them just fine.

Published

on

bose closing retail stores

Over the next few months, Bose plans to close all of their retail stores in North America, Europe, Japan, and Australia. The company made the announcement last week. With 119 stores closing, presumably hundreds of Bose employees will be laid off, but the company has not revealed exact numbers.

However, this shouldn’t be taken as a sign that the maker of audio equipment is struggling to stay afloat. Rather, the move marks a major change in how consumers purchase tech gear.

When the Framingham, Massachusetts-based company opened its first U.S. retail store in 1993, it was making home entertainment systems for watching DVDs and listening to CDs. According to Colette Burke, Bose’s vice president of global sales, these first brick-and-mortar locations “gave people a way to experience, test, and talk to us” about Bose products. “At the time, it was a radical idea,” she says, “but we focused on what our customers needed and where they needed it – and we’re doing the same thing now.”

When a lot of this equipment was new, consumers may have had more questions and a need to see the products in action before purchasing. Nowadays, we all know what noise-canceling headphones are; we all know what a Bluetooth speaker is. We’re happy to read about the details online before adding products to our virtual shopping cart. The ability for Bose to close its retail stores is probably also an indicator that Bose has earned strong brand recognition and a reputation as a reliable maker of audio equipment.

In other words, consumers are less and less inclined to need to check out equipment in person before they buy it. For those who do, Bose products can still be purchased at stores like Best Buy, Target, and Apple. But overall, Bose can’t ignore the fact that their products “are increasingly purchased through e-commerce,” such as on Amazon or directly from their website.

In a statement, Bose also said that it has become a “larger multi-national company, with a localized mix of channels tailored for the country or region.” While Bose is shutting down its retail stores in several continents, it will continue to operate stores in China, the United Arab Emirates, India, Southeast Asia, and South Korea.

Burke said the decision to close so many retail stores was “difficult” because it “impacts some of our amazing store teams who make us proud every day.” Bose is offering “outplacement assistance and severance to employees that are being laid off.”

Continue Reading

Business News

Finally the American workforce is now mostly women!

(BUSINESS NEWS) Women officially make up more than half the workforce, but that doesn’t mean total equality. So what does this tipping of the scale mean?

Published

on

women workforce

Equality for women has finally been achieved: according to the Bureau of Labor Statistics, women now make up more than half of the workforce! That’s it, that’s the article.

Kidding. Just because women are currently in the majority doesn’t mean all their problems are solved.

First, it’s worth noting that although women currently make up more than half of employees on payroll, that number is slight (50.04% to be exact). Not to mention, women are very likely to fall back in the minority once construction – a male dominated profession – picks back up in the spring.

Still, the number of women in the workforce has been growing over the last decade. While jobs in manufacturing – another male dominated field – are dwindling, jobs in education and healthcare are growing. When it comes to K-12 teaching, for example, women are more likely to fill teaching roles. Women also dominate in nursing.

Not to mention, women are earning more degrees than men!

That said, despite this progress, women as a whole are still getting paid less than men. Part of the reason lies in the types of careers that women end up in. Those female-dominated fields we mentioned earlier? They don’t typically pay well. Plus, there’s that pesky glass ceiling that still exists in some fields. Remember, there are more CEOs named John than female CEOs.

It’s also worth noting that the information collected by the Bureau of Labor Statistics only covered people on a payroll. That means the growing number of freelancers aren’t being accounted for in the report. Freelancing has become a great way for individuals, often women, to stay home and care for their family while also earning money. It would be interesting to know how freelancers shift the balance, both in employment and income.

Finally, there’s the invisible labor that women often contribute to society. According to the UN, women account for 75% of all unpaid labor – which includes things like childcare, meal prep and cleaning. This is vital labor that is not accounted for by studies like that of the Bureau of Labor Statistics and sheds light into another reason why women might still have lower pay than men, on average.

So, yes, the fact that women make up over half the workforce is something to be celebrated! That said, we’ve still got work to do on the equality front.

Continue Reading
Advertisement

Our Great Partners

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Emerging Stories

Get The American Genius
neatly in your inbox

Subscribe to get business and tech updates, breaking stories, and more!