The writing was on the wall for Mike Davis, as soon as RBs Kapri Bibbs and Joe Williams were added on Day 3 of the NFL Draft. Davis is now being released, per Ian Rapaport.
Davis is a former 4th-round pick in the 2015 draft out of South Carolina and was expected to be Carlos Hyde's backup. He has severely underwhelmed in his few years with the 49ers, with a lack of yards and too many fumbles.
Jeff Deeney over at Pro Football Focus might have said it best on Twitter regarding the release of Mike Davis:
Mike Davis over the past two seasons, has 108 yards on 54 carries, for a eye-popping 1 touchdown. This is a great move for John Lynch and Kyle Shanahan, as they can work, Kapri Bibbs, Joe Williams, DuJuan Harris and Tim Hightower into the rotation without having to sacrifice carries for Davis.
According to Rapaport, it looks like Davis has interest from other teams, so he might be picked up quickly. Best of luck to Mike Davis wherever he goes!