Why is sudo: bundle command not found?

Check if the PATH has the same values both with and without sudo. Apparently it cannot find bundle just because it is not listed in PATH

You can compare the outputs of following two lines

$ echo 'echo $PATH' | sh
$ echo 'echo $PATH' | sudo sh

Ideally sudo is supposed to leave PATH untouched. But this might be a side issue of your hosting distribution.

Edit by original poster. Output is:

[root@desktop etc]# echo 'echo $PATH' | sh
/usr/lib64/qt-3.3/bin:/usr/local/sbin:/usr/local/bin:/sbin:/bin:/usr/sbin:/usr/bin:/root/bin
[root@desktop etc]# echo 'echo $PATH' | sudo sh
/sbin:/bin:/usr/sbin:/usr/bin:/user/local/bin
[root@desktop etc]#

The user was created without a bash login shell. Change this in centos using system-config-users. Then su git into /home/git and move to gitlab directory. Execute the bundle commands without the sudo tag. The next error you will encounter is the missing database.yml in the config dir. fix this with the correct password (i.e. copy the mysql or postgres sample and edit).

I had this issue I thought that my gitlab installed from source and I got same error. but after try Omnibus method for backup my issue solved with this command:

sudo gitlab-rake gitlab:backup:create