I got this issue. I think got bundler installed. And since than I am not able to bundle install while creating app in RoR, or bundle install direct within the project. Kindly he
The following method works for me.
$ rails new blog -B # -B tells rails not to run bundle install
cd blog
$ bundle install --local
Edit the GemFile and uncomment the line "therubyracer"
$ rails server
=> Booting WEBrick
=> Rails 4.0.0 application starting in development on http://0.0.0.0:3000
=> Run `rails server -h` for more startup options
=> Ctrl-C to shutdown server
[2013-09-28 19:09:35] INFO WEBrick 1.3.1
[2013-09-28 19:09:35] INFO ruby 2.0.0 (2013-05-14) [i686-linux]
[2013-09-28 19:09:35] INFO WEBrick::HTTPServer#start: pid=1635 port=3000