bundle install --local still tries to connect to rubygems.org

bundle env

❯ bundle env
Bundler 1.6.2
Ruby 2.1.1 (2014-02-24 patchlevel 76) [x86_64-linux]
Rubygems 2.2.2
GEM_HOME


Gemfile
gem "json", "1.8.1"


Gemfile.lock
GEM
  specs:
    json (1.8.1)

PLATFORMS
  ruby

DEPENDENCIES
  json (= 1.8.1)

directory listing

❯ find .
.
./Gemfile
./vendor
./vendor/bundle
./vendor/bundle/ruby
./vendor/bundle/ruby/2.1.0
./vendor/cache
./vendor/cache/json-1.8.1.gem
./Gemfile.lock

Gemfile

gem "json", "1.8.1"

output

❯ bundle install --local
Using json 1.8.1
Using bundler 1.6.2
Updating files in vendor/cache
Unfortunately, a fatal error has occurred. Please see the Bundler troubleshooting documentation at http://bit.ly/bundler-issues. Thanks!
/home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/lib/bundler/source/rubygems.rb:293:in `fetch_gem': undefined method `source_uri' for nil:NilClass (NoMethodError)
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/lib/bundler/source/rubygems.rb:130:in `cache'
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/lib/bundler/runtime.rb:114:in `block in cache'
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/lib/bundler/runtime.rb:112:in `cache'
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/lib/bundler/cli/install.rb:79:in `run'
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/lib/bundler/cli.rb:146:in `install'
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/lib/bundler/vendor/thor/command.rb:27:in `run'
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/lib/bundler/vendor/thor/invocation.rb:121:in `invoke_command'
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/lib/bundler/vendor/thor.rb:363:in `dispatch'
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/lib/bundler/vendor/thor/base.rb:440:in `start'
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/lib/bundler/cli.rb:9:in `start'
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/bin/bundle:20:in `block in <top (required)>'
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/lib/bundler/friendly_errors.rb:5:in `with_friendly_errors'
	from /home/zachad/.rbenv/versions/2.1.1/lib/ruby/gems/2.1.0/gems/bundler-1.6.2/bin/bundle:20:in `<top (required)>'
	from /home/zachad/.rbenv/versions/2.1.1/bin/bundle:23:in `load'
	from /home/zachad/.rbenv/versions/2.1.1/bin/bundle:23:in `<main>'

downgrade the bundler from 1.6.2 to 1.5.x, hope this solves the issue