What Happened To WaiveCar After Shark Tank?

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The creator of a car-sharing app to decrease congestion and pollution caused by vehicles on the road.

Through participation in the company's program, customers are allowed to test-drive automobiles at no cost for a limited time. An hourly fee is applied for any driving time longer than the allotted amount. 

Users can reduce their overall travel costs and shift to more environmentally friendly modes of transportation thanks to the program's financial support, which comes from selling advertising space outside the vehicles.

A vinyl advertisement is attached to the exterior of each WaiveCar in the same way as traditional taxi cabs have them, and an LCD advertisement is shown on the top of each vehicle in the same way.

In addition, Zoli Honig and Isaac Deutsch, the founders of Waive Car, visited the television program Shark Tank in October 2017 to discuss their environmentally responsible business venture.

What is a waive car?

The trial program in Santa Monica drew approximately 3,000 users in its first month of operation. They used Hyundai and Chevrolet cars in developing the product long before they finished it.

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The Waiver is a free car-sharing service sponsored by advertisements. In episode 821 of Shark Tank, Zoli Honig and Isaac Deutsch attempt to get their business funding.

The business worked closely with Hyundai to assist the car maker in promoting their all-electric vehicle, known as the IONIQ, to the general public.

Hyundai provides automobiles to the company, and after two hours of free driving, they begin charging an hourly charge. Guests may drive for free for the first two hours of their reservation.

How Waivecar works?

Waivecar claims to be the world's first free electric vehicle sharing service since it was established in 2016; because of the novel marketing method, the company is located in Santa Monica. 

Customers have the opportunity to test-drive autos free of charge for two hours.

After that, they will be billed on an hourly basis. A driver must be at least 21 years old, possess a valid driver's license, and have a credit card to qualify for this service. 

Offering advertising space on the LED billboard on top of the Car is how Waiver gets revenue.

A ceiling-mounted 4G antenna network and an internal GPS are used to facilitate the delivery of advertising content relevant to the user's current position. 

In addition, the company offers a large quantity of free parking and charging stations for electric vehicles.

Who are the people behind Waive car?

The idea for Waiver came from Isaac Deutsch and Zoli Honig, and the service went live in early 2016 with a fleet of 20 vehicles

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Customers in the Santa Monica area increased by 30% in the first month, making it the market leader among rivals. Early Zipcar users were split at 45:55 between males and females.

WaiveCar's income strategy is very non-standard, relying on digital advertisements on a screen mounted to the top of the cars.

Nevertheless, it's enticing to have customers utilize the Car for a short period since doing so makes it quickly accessible to additional customers. Afterward, so it's very tempting. 

Prior to the Shark Tank, Waiver

Because of the organization's continued progress since that time, there will now be an additional 180 vehicles available for service in Los Angeles as part of the planned development of the firm.

Even though the founders of the car-sharing business acknowledge that there are too many competitors.  

They continue to have confidence in their approach because it is unique in comparison to the others; in fact, they believe that more people will be drawn to their services because they are provided at no cost.

A waiver was presented for the first time on the hit program Shark Tank on ABC shortly after the show relocated to Los Angeles. At long last, on October 29th, 2017, the two founders were broadcast.

On the Shark Tank Pitch with The Waiver

Isaac claims that this is the very first free car-sharing program ever offered around the globe. However, Zoli is transparent that most of its income comes from advertising.

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His organization claims that each Car is equipped with a vinyl advertising wrap and an LCD capable of broadcasting dynamic advertisements. According to Zoli, customers download the app, sign in, and are provided with local WaiveCar options.

Isaac believes the company saw substantial growth when it opened in Los Angeles five months ago. He requires more cars and is interested in collaborating with a Shark to increase its worldwide footprint rapidly.

Lori says that she has seen WaiveCar in action since she is impressed by their originality. Barbara wonders whether the automobiles need to be returned to where they were found.

Isaac claims that the cars may be returned to any public meter since drivers of electric vehicles are permitted to park in the city of Santa Monica free of charge.

According to him, every driver must do a brief check-up on the app before each booking.

According to Zoli's projections, the monthly break-even expenditure for each Car will be $1500. As a result of this, the sharks report having no expenses related to marketing. 

Zoli shares, that there are now 4,300 new users. The founders inform Mark that the company has $1.3 million. Barbara is skeptical about the profitability of the enterprise.

Zoli says it is contingent on car numbers. He estimates a profit of $1.2 million, or $300 thousand, assuming each of the 20 autos brings in $5000. He claims he could turn a profit of $8 million on two hundred autos.

As per the inventors, the LCDs on top, which the creators describe as "crazy custom designed," are another distinguishing feature.

In addition, Zoli asserts that they have an agreement with the manufacturer that gives them exclusive distribution rights for the product.

After that, Mark will no longer be a part of the company due to the saturated market. Lori also quits because she believes anybody can replicate this company's business model.

Oscar Health Insurance and XYZ were the only two sponsors the founders announced in answer to the question about the number of sponsors.

While interacting with Chris, the guest shark, they get into a passionate argument. Following an extended debate, he, too, has decided to quit. A little less than a minute after that, Kevin starts speaking. 

He and Chris agree that they do not have anything particularly note-worthy working in their favor. However, given the magnitude of the potential loss, he advises them that there is only one way for them to submit an offer.

Kevin provides them with a loan for half a million dollars at an interest rate of 12% for thirty-six months in exchange for 4% of their equity and any unused digital advertising space. 

Furthermore, the shark shares that if the space isn't rented out, they won't get any of their money back. The firm's creators should take Kevin up on his offer of free promotion, per Lori's recommendation.

Barbara rewrites the agreement to stipulate $500,000 in exchange for 10% of the stock, with no stipulations and no interest.

The business proprietors argue that a loan is not essential for the company and that $5 million is too much money. Unfortuitously, Barbara made it clear that she would not settle for anything less than 10% of the total.

Isaac and Zoli propose without first reaching an agreement with Barbara. Instead, they offer $500,000 in exchange for a 1% stake in the company and an 88% discount on digital advertising that has not yet been sold.

After taking the bait, Kevin proposes a loan for $500,000 with an equity contribution of 2.5% and a discount of 80% on any advertising space that remains unsold.

Where have they been recently?

After completing his deal with WaiverCar, Kevin promoted the company on his website

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As a result, the company responded to the show's popularity by delivering 19 cars to Cal State Los Angeles for use on campus and in the local community within a few short hours of its airing.

Sadly, the organization did not update its social media since 2019.

In addition, insurance issues resulted in canceling the WaiveCar program at Cal State Los Angeles in January 2020. Its demise as the Covid-19 pandemic cut off any chance of the style ever connecting to the industry. 

Following this, the founders launched a new company under WaiveWork, renting out electric automobiles for $280 per week. They stopped posting on social media at the end of 2018.

Zoli has been working at REEF since March 2020, while Isaac joined the company in December of the same year. Unfortunately, nothing has been posted to the WaiveCar website or social media channels since June 2021. The site itself is now blank.

Takeaway: What happened to WaiveCar after Shark Tank

As you can probably guess, WaiveCar didn't go on to become the next Uber or Lyft. They did, however, start offering rideshare services in select cities—which is pretty impressive for a company that was still so new when it was pitched on Shark Tank!

We're excited for what comes next for the team at WaiveCar and hope you are too!

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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