WaiveCar, featured on Season 9 of Shark Tank, is a car-sharing platform that offers users free, ad-supported car rentals. Founded on the premise of providing accessible transportation while also leveraging the opportunity for brands to advertise, WaiveCar has a business model that is as ingenious as it is user-friendly.
WaiveCar’s electric cars feature eye-catching digital displays. These displays serve two purposes: they show advertisements when the car is parked and guide the user with navigation information when in use.
Users are not charged for the first few service hours; a nominal fee is charged afterward. It is a win-win model for the users who need affordable transportation and for the advertisers who get a mobile platform to reach their target audiences.
WaiveCar provides many additional features that make it appealing to urban dwellers and its innovative business model. It uses electric cars, which aligns with growing eco-conscious trends and helps reduce carbon emissions. The convenience of the service is impressive.
Users can book a WaiveCar through the company’s app, pick it up from designated spots, and drop it off anywhere in the service area, providing flexibility that is hard to match.
Moreover, the ease of use and low cost make WaiveCar a great option for people who occasionally need a car but do not want to deal with car ownership’s costs and responsibilities.
Tourists and business travelers can use it in the same way as traditional car rentals without the hassles. Hence, WaiveCar is a practical, cost-effective, and environmentally friendly transportation solution that aligns well with modern urban living needs.
|Entrepreneur||Zoli Honig and Isaac Deutsch|
|Product||Electric car ride-sharing service|
|Investment Asking For||$500,000 for 2% equity in Waivecar|
|Final Deal||$500,000 loan at 12% interest for 2.25% equity in Waivecar + 80% discount on unsold ad space|
|WaiveCar Episode||Season 9, Episode 7|
|WaiveCar Business Status||Unknown|
|WaiveCar Website||Visit Website|
|WaiveCar Net Worth||Unavailable|
What is WaiveCar?
WaiveCar is a car-sharing platform that provides customers with free, ad-supported car rentals. It’s essentially a blend of traditional car rentals and advertising.
Users are allowed to use electric cars for free for a certain period, and in return, the car displays advertisements on the digital billboard placed on the car’s roof. This model serves as a mobile advertising platform for brands while offering an eco-friendly transportation alternative for users.
Here are more details about WaiveCar:
- The platform uses a fleet of electric cars, which are both environmentally friendly and cost-effective to operate. This aligns with the growing global trend toward sustainable transportation.
- The service is free for the first two hours, and then there’s a per-hour charge beyond that time frame. This makes it an affordable option for short trips around the city.
- Each car has a digital billboard on the roof, which displays ads when the car is driven. This is how WaiveCar monetizes the service.
- The digital billboards are GPS-enabled, displaying geo-targeted ads relevant to the car’s current location. This makes the ads more effective and valuable for advertisers.
- Users can book a car through the WaiveCar mobile app, which provides a seamless and convenient experience.
- Besides being an advertising platform, WaiveCar also promotes electric vehicles and contributes to reducing carbon emissions.
WaiveCar has created a unique business model that combines car-sharing, advertising, and sustainability.
Who is the Founder of WaiveCar?
WaiveCar was co-founded by Isaac Deutsch and Zoli Honig. Isaac Deutsch, an entrepreneur with a background in finance and real estate, serves as the company’s CEO, while Zoli Honig, with his experience in tech startups, plays the role of the Chief Technology Officer.
Before venturing into the sharing economy with WaiveCar, Isaac Deutsch had a successful career in real estate investment and mortgage brokerage, experiences that equipped him with an understanding of the commercial landscape.
On the other hand, Zoli Honig is a technologist who had already co-founded and sold a tech startup before joining forces with Deutsch. Honig’s experience and interest in technological innovations set the perfect platform for the creation of WaiveCar.
The idea of WaiveCar was conceived when Deutsch and Honig recognized a niche that could be filled in the burgeoning sharing economy. They saw an opportunity to combine the growing popularity of car-sharing with the demand for unique advertising platforms.
Drawing on Deutsch’s business acumen and Honig’s tech expertise, they developed a model for a car-sharing service where the costs were offset by advertising revenue.
Before appearing on Shark Tank, WaiveCar had already begun to establish itself in the car-sharing market. The company initially launched in Santa Monica, California, in 2016 and had a fleet of 20 cars that users could borrow for free for two hours.
The cars were equipped with roof-mounted digital billboards that displayed ads, making the vehicles move billboards when parked.
The company’s innovative approach started to attract attention, and its success in its initial market led to plans for expansion. This progress laid a strong foundation for its presentation on Shark Tank, raising the company’s profile and setting the stage for further growth.
How Was The Shark Tank Pitch of WaiveCar?
The Shark Tank presentation of WaiveCar was led by its co-founders Isaac Deutsch and Zoli Honig, who introduced their innovative concept of a free, electric-car sharing service to the Sharks.
They requested an investment of $500,000 in exchange for 2% equity in their company, valuing WaiveCar at a massive $25 million.
Isaac and Zoli explained that WaiveCar was a car-sharing service that allowed customers to use their vehicles for free for up to two hours, with the company’s revenue being generated primarily from advertising.
They highlighted the strategic use of digital ads displayed on a mounted screen on the car roofs and the ease with which customers could access their service through an app.
Despite being a young company that had only launched in Los Angeles five months prior, the entrepreneurs demonstrated considerable growth and explained that their main issue was the need for more cars.
They expressed their ambition to expand globally and hoped to collaborate with Shark to achieve this goal. The Sharks were generally impressed with the novelty of the business model and the founders’ early traction.
Lori had noticed WaiveCar on the streets, and the founders had to answer several detailed queries about the service mechanics and financials.
However, several concerns emerged. Mark Cuban was worried about the saturation of the advertising industry and opted out. Lori and guest shark Chris also dropped out, citing concerns that the business idea could easily be replicated.
Kevin O’Leary, also known as “Mr. Wonderful,” offered a $500,000 loan at 12% interest for 36 months, 4% equity in the company, and unsold digital advertising space. Barbara Corcoran offered a straight equity deal of $500,000 for a 10% stake in the company.
Ultimately, the founders accepted a counteroffer from Robert Herjavec, who proposed a $500,000 loan for 2.25% equity and unsold ad space at an 80% discount. This was a suitable agreement for both parties, marking a successful pitch for WaiveCar on Shark Tank.
Final Deal: Kevin O’Leary agreed to invest $500,000 for a 2% stake in WaiveCar.
What Happened To WaiveCar After Shark Tank?
WaiveCar, founded by Isaac Deutsch and Zoli Honig, presented their business model on Shark Tank, seeking an investment of $500,000 for a 2% equity stake in their company.
The service provided by WaiveCar was unique – they offered free electric rental cars to drivers, monetizing the service through advertisements displayed on the cars.
Their pitch was met with mixed reactions from the sharks. Mark Cuban expressed concerns over the advertising market being oversaturated and consequently dropped out.
Lori Greiner pointed out the ease with which the business model could be replicated, and she, too, withdrew. Chris Sacca, guest shark and investor in Uber, also dropped out, feeling that WaiveCar’s service didn’t bring anything new or better than existing players like Uber.
Kevin O’Leary, however, saw potential in the business. He initially offered a loan of $500,000 for 12% interest and 4% equity in the company, also stating a contingency that he could utilize any unsold advertising space.
Barbara Corcoran made a competing offer of $500,000 for a 10% equity stake but was unwilling to negotiate on that percentage.
Honig and Deutsch countered Kevin’s offer by proposing a $500,000 loan for 12% interest with 1% equity and a whopping 80% discount on any unsold advertising space. This led to some back-and-forth negotiations, ultimately culminating in an agreement.
The final deal was a $500,000 loan with 12% interest, a 2% equity stake, and an 80% discount on unsold advertising space.
Post-Shark Tank, the business faced challenges, and unfortunately, WaiveCar is no longer operational as of the latest update. Despite this setback, both Deutsch and Honig have continued their entrepreneurial journey, joining ReefDrive and focusing on renting “fun utility vehicles.”
They operate in LA and Miami and maintain a presence in their initial base, Santa Monica. Their spirit of innovation seems undeterred, and they continue to venture into alternative vehicle rental space.
WaiveCar Shark Tank Update
After their appearance on Shark Tank, WaiveCar, the all-electric car rental-sharing company, experienced a journey filled with ups and downs. Founded by Zoli Honig and Isaac Deutsch in 2014, the company offered free usage of electric cars for the initial two hours, followed by a charge of $5.99 per hour.
WaiveCar unique revenue model revolved around displaying ads on their vehicles, generating income through digital vehicle advertisements. Post-Shark Tank, WaiveCar secured a $500,000 loan from Kevin O’Leary with a 12.5% interest rate for a 2% equity stake in the company.
They embarked on expansion efforts, increasing their fleet. However, they faced challenges such as insurance issues and a decrease in demand due to the impact of the Covid-19 pandemic.
The company then shifted its focus to a new service called WaiveWork, an affordable car rental service tailored for income-seeking drivers, offered at a rate of $40 per day.
This strategic pivot brought about a growth in valuation from $3.5 million to $6.7 million. Despite this transformation, the business eventually entered a state of hiatus.
Interestingly, Waive Car’s founders, Zoli Honig and Isaac Deutsch, have transitioned to a new venture called REEF, which is focused on transforming parking facilities into mobility hubs.
The specific future trajectory of WaiveCar remains uncertain, with the company’s operations being on hiatus and its founders dedicating their efforts to a new endeavor.
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 and differentiated business strategy position the company as a major disruptor in the advertising and automobile-sharing industries.
WaiveCar, 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 several 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.
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 Business?
WaiveCar, the innovative electric car-sharing company that offered free car rentals with an advertising-based revenue model, faced a series of changes and challenges since its appearance on Shark Tank.
Founded by Zoli Honig and Isaac Deutsch in 2014, WaiveCar allowed drivers to enjoy two hours of free driving before a $5.99 per hour charge applied. This business model is sustained through ad revenue generated from digital billboards on their electric cars.
While WaiveCar expanded its fleet in Los Angeles and New York post-Shark Tank, collaborating with California State University for a zero-emission vehicle sharing program, it encountered insurance issues that led to a temporary halt in Los Angeles.
They also introduced WaiveWork, an affordable rental service targeted at those with driving-centered careers.
However, despite these efforts, WaiveCar’s future direction became uncertain as they shifted their focus to a new project called REEF. This transition hinted at potential company trajectory changes, including the possibility of a relaunch or acquisition.
What Is the Net Worth of WaiveCar?
According to our research, the net worth of WaiveCar is unavailable since the company’s status is unclear after its appearance on Shark Tank. The valuation of WaiveCar was $25 million when it appeared on Shark Tank.
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