The ridesharing app that leverages blockchain technology Teleport has suddenly shut down, with the company announcing the news on Thursday (January 30).
While the website once allowed customers to use the site and learn about the app, it now flashes up a message warning of the shut down.
“This is not the outcome we had hoped for, but we’re incredibly grateful for this community and everyone who believed in the vision and showed up with enthusiasm. Your support meant everything.
“Thank you for believing in us, and we’re sorry we didn’t find a way to make this business work!”
The message continues: “We’re hoping to post a more detailed analysis of what led to this decision in the future, but for now we’re focused on an orderly wind down.
“The Teleport app will support offramping any remaining USDC balances and exporting your private key until 28 February 2025.”
An engineer named Chase has reposted the news on X, writing that while the decision was difficult, it was necessary. “The rideshare market isn’t ready for a decentralized protocol just yet.”
The decision was difficult but necessary. The rideshare market isn't ready for a decentralized protocol just yet.
It was an absolute pleasure working with the entire teleport team, all of whom are extremely talented in their respective verticals—truly top tier.
Onwards https://t.co/IBWPgo7y4n
— Chase (@Chasewhip) January 30, 2025
What was Teleport trying to do in the industry?
The whole premise of this ridesharing service was that it was decentralized and uses blockchain technology with an aim of lowering the costs. On the company’s X account, it states “riders pay less. Much less. Drivers earn more. Much more. And early adopters get rewarded.”
The company was founded in 2022 by Paul Bohm, with the Decentralized Engineering Corporation that built the app having raised $9 million a seed funding round.
The app included a full Solana wallet, with all transactions and key data recorded on-chain. As for the ride-share operators, these included local entities that connected drivers and riders. It’s those that compete with each other on pricing and service quality.
In a previous interview with Solana Compass, the founder highlighted how it was the disparity between what riders pay and what drivers earn that initially sparked his interest.
Featured Image: Via Teleport on X