Startup company, Bolt Mobility, for which Jamaican Olympic legend Usain Bolt was a spokesperson, says it was forced to “significantly scale back operations” after investors “failed to deliver expected fundraising”.

The company, according to reports in the US media, has stopped operating in eight US cities over the past several weeks, leaving behind pricey mini-electric vehicles that can only be unlocked through its mobile app.

Areas with abandoned Bolt Mobility vehicles reportedly include Portland, Oregon; St Augustine, Florida; Richmond, Virginia; Richmond, California; and Burlington, South Burlington and Winooski, Vermont, according to TechCrunch.

Mayor of Richmond, California, Tom Butt is quoted in the media as saying Bolt Mobility “apparently went out of business without prior notification or removal of their capital equipment from city property.”

“The city is coming up with a plan to remove all the abandoned equipment,” Butt added.

Bolt Mobility, which was founded in 2018 with a mission to “revolutionise transportation through safe, smart and sustainable transit solutions,” had raised more than US$40 million from investors, according to Crunchbase data.

A notice on Bolt Mobility’s website says the company was forced to “significantly scale back operations” on June 30 after investors “failed to deliver” expected fundraising.

Eight cities that had bikes and scooters operated directly by Bolt Mobility were then forced to shut down, while independent owners that control Bolt-branded operations in 25 other markets are continuing to operate, the company said.

See full statement by Bolt Mobility below.

“In 2018, Bolt Mobility was launched with a goal of revolutionizing transportation through safe, smart and sustainable transit solutions aimed at reducing traffic gridlock, parking congestion and carbon-footprint impact.

“In late 2019, Bolt Mobility transitioned from heading all operations in each of its respective markets to instead providing a superior technological platform that enabled independent owners/operators in each market to run day-to-day operations.

“On June 30, 2022, with equity investors failing to deliver on committed investment, Bolt Mobility was forced to significantly scale back operations. Prior to this decision, Bolt Mobility had every intention of remaining fully operational and even to expand into additional markets. Any suggestion otherwise is wholly inaccurate.

“As of July 2022, independent owners/operators were running day-to-day operations in 25 of Bolt Mobility’s 33 markets—which enables these markets to continue to operate today. As for the eight markets still then-operated by Bolt Mobility headquarters, the intention had been to continue their respective operations via forthcoming, agreed-upon investment.

“Bolt Mobility has worked and will continue to work with independent owners/operators to provide support in collecting any assets (bicycles and scooters) that remain in non-operational markets.

“We greatly value and profoundly appreciate the extraordinary contributions Bolt Mobility employees, ambassadors, investors and partners have made in our efforts to provide safe, smart and sustainable transit solutions. Investors failing to deliver on their commitment toward funding Bolt Mobility in no way reflects upon our team’s substantial achievements of the last five years.”