When I run cap deploy:update I get the error below, indicating that bundle is not found. When I run echo $PATH from cap shell
To avoide such problem you should have most recent versions of RVM (currently it is 1.13.5) installed in both places: locally and on remote server.
Next, check if your deploy.rb has
require "rvm/capistrano"
require "bundler/capistrano"
This line is not needed anymore:
$:.unshift(File.expand_path('./lib', ENV['rvm_path']))
Hope this will help