What Happened To WaiveCar After Shark Tank? WaiveCar Shark Tank Update 2022

 

Inventor of a car-sharing app aimed at reducing traffic and pollution. The firm’s program allows users to drive vehicles for free for a short period and charges an hourly rate for any longer driving time. It is subsidized by selling marketing space on the cars’ exteriors, allowing users to minimize travel expenses and transition to renewable transportation options.

Company Overview in Shark Tank

Company Name WaiveCar
Episode   Season 8, Episode 21
Product Offering       Ride-sharing for electric car service
Founded 2016
Founder Zoli Honig and Isaac Deutsch
Required Investment $500K for 2.25% ownership
Closing Deal $500K loan at 12% interest for 2.25% ownership and + 80% discount on available ad space
Offered Sharks Kevin O’Leary
Current Business Status Out of business

What is WaiveCar?

WaiveCar is a mobile app that allows users to book and pay for automobiles. The Santa Monica pilot program attracted nearly 3,000 users in its first month. During their early invention, they employed both Hyundai and Chevrolet cars.

In Shark Tank episode 821, Zoli Honig and Isaac Deutsch want to close a deal for WaiveCar, their ad-supported free car-sharing service.

The company collaborated with Hyundai to help the automaker in presenting its electric vehicle, the IONIQ, to the public. Hyundai offers vehicles to the firm, allowing people to drive without any fee for the first two hours before charging an hourly rate.

How Does WaiveCar Work?

Founded in 2016, WaiveCar claims to be the first free electric-car sharing service globally. As a result of its unique advertising approach, the Santa Monica-based firm enables clients to drive the automobiles without charging a fee for two hours, then they will be invoiced per hour). Drivers must be at least 21 years old and have a valid driver’s license and a credit card to utilize the service.

WaiveCar generates income by offering ads space on the vehicle’s roof-mounted LED billboard. Ad material is sent based on location via a ceiling 4G antennas network and an inbuilt GPS. On top of that, the business provides plenty of free-payment parking and charging outlets for electric automobiles. 

Who Founded WaiveCar? Founder Backgrounds

Waivecar, the brainchild of Isaac Deutsch and Zoli Honig, was first launched in early 2016 with 20 automobiles. In the Santa Monica region, they had already drawn more clients in the first month than its competitors Car2Go and Zipcar had in their early days combined, with a female user base of 45% and a male user base of 55%.

WaiveCar’s revenue is derived from digital adverts broadcast on a screen located atop the vehicles, making it a very unusual business model. Having clients use the automobile for a brief time makes it available to others immediately afterwards, so it’s very tempting. 

WaiveCar Business Before Shark Tank

Once WaiveCar signed a 12-month arrangement with Hyundai, they could utilize their own fleet of automobiles to do business. In return, the vinyl wraps would have advertisements for the automobile maker. The passenger would be requested to take a question on the feedback after each journey.

Since then, the company’s expansion into Los Angeles with an extra 180 cars has become real because of the organization’s growth.

Although the founders acknowledge that the car-sharing business has too many rivals, they still have confidence since their method is distinct from the rest—if anything, more people would be drawn to their services since they are free of charge.

WaiveCar made a debut on ABC’s blockbuster show Shark Tank shortly after it expanded to Los Angeles. In the end, the two founders aired on October 29th, 2017.

WaiveCar During Shark Tank Pitch

Isaac and Zoli, who founded WaiveCar, appear in front of the sharks, demanding $50K in exchange for a 2% ownership in the company.

According to Isaac, this is the world’s first completely free car-sharing service. As Zoli discloses, the majority of its revenue comes from advertising. His company claims to have a vinyl advertising wrap and an LCD that can broadcast dynamic adverts on each vehicle.

Zoli stated that clients download the app, sign in, and are presented with nearby WaiveCar.

Isaac believes this firm has grown a lot in the last five months since they started in LA. That is why he needs extra vehicles and wants to work with a Shark to develop its international presence fast.

Lori claims to have witnessed WaiveCar since she is awed by their novelty.

Barbara inquires as to whether the vehicles need to be restored to the site. Since electric vehicles are allowed to park for free in Santa Monica, Isaac says the automobiles can be returned to any public meter.

He says a fast check-up on the app is obligatory for every driver before every booking. Zoli forecasts that each car’s monthly break-even spending will be $1500 monthly. Watching, the sharks declare zero marketing expenditures. Zoli asserts there are 4,300 new users.

The founders inform Mark that they have a total of $1.3M. Barbara questions the company’s profitability. Zoli says it is dependent on vehicle numbers. He predicts a $1.2M profit, or $300K if all 20 cars earn $5000. He claims to have made an $8 million profit on 200 automobiles.

The inventors also proclaim the “crazy custom engineered” LCDs on top are what sets them distinct. Besides, Zoli claims to have an agreement with the manufacturer that is exclusive to them.

After that, Mark is out because of the current industry saturation. Lori also leaves because she thinks anyone can copy this business concept.

In response to the number of sponsors, the founders declared only two—Oscar Health Insurance and XYZ. During their encounter with Chris, the guest shark, they engage in a heated dispute. After a lengthy discussion, he also resigns.

Kevin begins speaking less than a minute later. Chris and he both agree that they don’t have anything remarkable going for them. With such high risk, he tells them there is only one option for them to make an offer.

Kevin gives them a $500K  loan at 12% interest rate for 36 months, along with 4% of their equity and any spare digital advertising space. The shark claims they’ll receive nothing back if the space isn’t sold. Lori advises the company’s founders to take Kevin up on his offer of free advertising.

Nonetheless, Barbara modifies the contract to $500K  for 10% equity, no conditions, and no interest. The company’s founders claim a loan is unnecessary and $5 million is too much for their firm. Unfortunately, Barbara specified that she would not accept anything less than 10%.

Without an agreement with Barbara, Isaac and Zoli offer $500K for a 1% share and an 88% discount on digital advertisements that have not yet been sold.

Kevin takes the bait and offers a $500,000 loan with a 2.5% equity and 80% discount on unsold advertising space. 

WaiveCar Closing Deal in Shark Tank

Zoli and Isaac come to the Shark Tank searching for $500,000 to receive a 2% share in their company. Eventually, Kevin O’Leary accepts the bait and provides a $500,000 loan with a 2.5% equity stake and an 80% discount on available ads space. 

WaiveCar After Shark Tank

After embracing Kevin’s $500,000 offer on ABC’s Shark Tank, the firm quickly expanded its fleet, providing 19 cars in the Los Angeles region and another 3 in New York, to name a few locations.

Perhaps even more interesting, though, is the fact that they have subsequently formed a partnership with the Five Tier Group of Companies.

Advertisers can now design and deliver advertisements straight to the vehicles themselves, thanks to WaiveCar’s marketing automation software. This technology instantly interfaces with the company’s mobile service, making the process much more appealing.

As part of its efforts to expand into the New York City market, the firm formed a partnership with a developer that has allowed them to provide its services to tenants of Level, a rental tower on the Williamsburg waterfront.

According to the agreement, only Level dwellers will be able to access the 500 automobiles in the building.

Current Update: Is WaiveCar Still In Business?

Kevin’s transaction with WaiverCar was a success, and he also advertised the business on his website. The corporation sent 19 automobiles to Cal State Los Angeles for campus usage and in the neighboring area just hours after the show aired.

Sadly, the organization stopped posting new information to their social media accounts in 2019. In January 2020, a problem with insurance forced Cal State Los Angeles to terminate the WaiveCar on its program.

The form was never able to reconnect to the industry from that moment on, and it came to an end in March due to the Covid-19 epidemic.

The founders then started a new business, named WaiveWork for renting electric vehicles for $280 weekly. However, their social media profiles have not been updated since 2019.

Presently, Zoli has been employed at REEF since March 2020; meanwhile, Isaac began working in the same firm in December that year. As of June 2021, there has been no update in the social media accounts, and the WaiveCar website is a blank page.