WaiveCar is a free, all-electric car-sharing service that offers complimentary rides for up to two hours. How does a business afford to provide free services?
The WaiveCar is encased in vinyl advertising and has LCD displays atop them, similar to a taxicab.
The founders of Waive Car, Zoli Honig and Isaac Deutsch of Santa Monica, California, proposed their eco-friendly business on Shark Tank in October 2017.
The company approached the Tank seeking a $500,000 investment in return for a 2% stake in WaiveCar.
What is WaiveCar?
The company WaiveCar offers complimentary car rentals to its customers, making it the world’s first all-electric car-sharing service. The first two hours of driving by a driver are free. After that, $5.99 per hour for each hour afterward.
The company offers the lowest rates in the car-sharing sector, which is financed by revenue produced by advertisements broadcast on the digital billboards mounted atop its fleet of electric automobiles.
Who is the Founder of WaiveCar?
Waivecar was founded in 2014 by Zoli Honig and Issac Deutsch. Zoli has been an entrepreneur for a long time, having founded several companies before WaiveCar.
WaiveCar Before Shark Tank
WaiveCar, which launched in 2016, bills itself as the world’s first free electric car-sharing service.
WaiveCar is based in Santa Monica and allows customers to drive their vehicles for free for two hours (after two hours, they must pay per hour) through a marketing scheme that allows businesses to promote their products on the cars directly.
The driver of an automobile can act as a mobile billboard, so long as the license and credit card are valid.
WaiveCar is extremely unique in that the firm does not profit from its clients. Instead, the company’s revenue is solely derived from digital advertisements broadcast on a screen located atop the vehicles.
Customers are well served by renting a vehicle for a short period of time, since others can immediately utilize the vehicle afterward.
Deutsch and Honig launched WaiveCar with 20 cars as a pilot program in May 2016.
They already gathered more than 3,000 customers in the Santa Monica area within their first month, with 45 percent of women and 55 percent of men, which was more than their competitors Cart2Go and Zipcar managed in their early months.
WaiveCar secured a 12-month agreement with Hyundai, which enabled the company to operate its own fleet of cars.
The company would supply the carmaker with advertising space for the vinyl wrap. The driver would also be asked to answer questions after each ride.
The company’s growth has enabled it to expand into Los Angeles by 2017, adding 180 vehicles.
The car-sharing industry is saturated with competition, but they remain confident owing to their unique technique. They believe that more people will use them because they are free.
A few days after expanding to Los Angeles, WaiveCar appeared on ABC’s famous television show Shark Tank. A final episode featuring the two founders appeared on October 29, 2017.
WaiveCar on Shark Tank
Isaac and Zoli appear on Shark Tank seeking $500,000 investment in return for a 2% stake in their business WaiveCar. They describe their enterprise and present their proposal.
A series of questions follow. Lori claims to have seen these automobiles. Barbara is told that the city-owned charging stations will accept the automobiles.
The cost of automobiles is approximately $1000 per month, and the break-even point is approximately $1500 per month.
The group has raised $1.3 million so far. A price of $5000 a month is needed to break even on the pilot.
They’d earn $300,000 each year on that. To earn more money, they require an increase in the number of automobiles on the road.
Additionally, the guys receive a discount on the advertising display units from the manufacturer.
Mark believes advertising is oversaturated and has opted out. Lori believes that anyone can replicate it; she exits.
Robert is the next to speak, citing the limited number of advertisements currently in place. Chris arrives following a heated discussion.
Kevin offers $500,000 as a 36-month loan at 12% interest in exchange for 4% equity in the company and an 80% discount on unsold advertising space.
They react with the same deal at a 2% stock stake, which Kevin accepts.
Kevin O’Leary negotiated a deal with Waive Car after being impressed with the business plan by shark Chris Sacca (one of the initial investors in Uber).
An investor lent him $500,000 to be repaid over 36 months at 12% interest, 2% equity, and 80% off on any unsold advertising space.
WaiveCar launched a fleet of 19 Chevrolet and Hyundai electric cars in Los Angeles and three in New York City in 2018 following their appearance on Shark Tank.
WaiveCar was made available in New York to the residents of Level, a new residential building on Brooklyn’s Williamsburg waterfront (with 540 units).
WaiveCar After Shark Tank Update
Kevin’s contract was completed, and he now promotes the brand on his website. Immediately following the broadcast, the business deployed 19 vehicles to Cal State LA for usage on campus and in the surrounding neighborhood.
Advertisers can now develop and distribute commercials straight to the cars using their marketing automation software, which interfaces directly with WaiveCar’s digital platform—a feature that significantly increases the allure of the experience.
They discontinued posting on social media in October 2019. Cal State LA discontinued the WaiveCar program on its campus in January 2020 due to an insurance issue. “ATTENTION!! WAIVECAR VEHICLES WILL BE TEMPORARILY OUT OF SERVICE DUE TO AN INSURANCE SWITCH.” signs.
They were never restored to service, and the University was forced to close in mid-March owing to the Covid-19 outbreak.
They later founded WaiveWork, which hires electric automobiles for $280 per week, although they continue to use the same social media accounts that have been inactive since October 2019. Zoli joined REEF in March 2020.
Isaac will begin working for the same company in December 2020. As of June 2021, the social media platforms have not been updated, and the Waive website has been reduced to a black page with the corporate logo.
The company recently partnered with a developer to offer its services to residents of Level, a waterfront rental building in Williamsburg.
The arrangement stipulates that only residents of Level will have access to the vehicles, which will be housed in a complex of more than 500 apartments.
Did WaiveCar Secure a Deal on Shark Tank?
Waivecar founders Zoli Honig and Isaac Deutsch secured a $500,000 loan from Kevin O’Leary in exchange for 2% equity in the company during Season 9 Episode 7 of Shark Tank.
How Does WaiveCar Make Money?
WaiveCar’s innovative digital out-of-home advertising strategy, as well as its differentiated business strategy, position the company as a major disruptor in the advertising and automobile sharing industries.
The company, launched in January 2015, has raised 3.5 million dollars in venture capital. It is currently valued at $6.7 million.
What are People’s Thoughts on WaiveCar?
WaiveCar has accumulated a number of positive evaluations during the last few months. For example, the company now has a 4.5-star rating on Yelp, garnered from roughly 20 users.
It appears that many customers are content with the free driving concept, judging by some of their reviews.
It makes sense that they have expressed concerns about a vehicle shortage, particularly since they are relatively new compared to some of their competitors.
Is WaiveCar Still in Operation?
WaiveCar launched a fleet of 19 electric cars in Los Angeles and another three in New York following their appearance on Shark Tank.
WaiveCar partnered with California State University to launch a zero-emission vehicle sharing program in 2019.
WaiveCar’s car-sharing services at its Los Angeles campus were halted in January 2020 as the company tried to renew its insurance for its fleet of electric vehicles. WaiveCar appears to be facing plenty more trouble in the foreseeable future.
The WaiveCar app has mysteriously vanished from the Google Play Store and Apple App Store, leaving users to speculate on the fate of the promising startup. It is unknown whether the WaiveCar has undergone a pivot.
The company has since introduced WaiveWork – an economical car rental solution for people with driving-related jobs. WaiveWork is designed for people who drive for work, but don’t own or want a car.
WaiveCar offers the Hyundai IONIQ Hybrid electric car for rent for $40 per day, including insurance and maintenance.
Waivecar appears to be on hiatus at the moment. The founders have moved gears and will begin work on a new project, REEF, in 2020. REEF will convert stagnant parking lots into flourishing mobility and logistics hubs.