The Solana -based ridesharing platform Teleport has announced its closure, citing insufficient market readiness for decentralized ridesharing as the primary reason. The decision marks a disappointing turn for the company, which aimed to position itself as a viable alternative to established giants like Uber and Lyft. In a statement released on its website, Teleport expressed regret that it could not find a path to success.
The founder of Teleport, Paul Bohm, reflected on the challenges faced, describing the endeavor as one of the most difficult undertakings he has attempted. The startup had managed to raise $9 million in funding as of October 2022 and launched its services publicly in June 2023. As part of its winding-down process, Teleport has committed to assisting users with off-ramping their USD Coin balances and private keys until February 28.
Teleport attempted to set itself apart in the highly competitive ridesharing market by implementing a lower commission structure, taking a 15% commission on each ride compared to Uber’s 25% – 30%. The company also offered drivers the option to receive payments in either USD Coin or traditional fiat currency through apple Pay. Despite these innovations, Teleport reported mixed performance; it completed a total of 1,321 rides and attracted approximately 13,834 users by late November 2023.
Most of its usage occurred in urban areas like New York City and Austin, Texas. However, user feedback on the platform’s apple App Store reviews revealed frustration with driver availability, indicating a potential mismatch between supply and demand. Teleport operated as the mobile interface for the TRIP Rideshare Protocol, which is part of the Decentralized Engineering Corporation. Efforts to establish decentralized ridesharing options have been attempted before, but many faced challenges in gaining traction within the market.
