WaiveCar Shark Tank Update – Net Worth 2024

Renting cars was often expensive, making it less accessible for many people. Traditional car rentals also relied heavily on gasoline-powered vehicles. It wasn’t environmentally friendly. Zoli Honig and Isaac Deutsch saw an opportunity to change this with WaiveCar. Their company offered free electric car rentals, funded entirely by advertising. It aimed to make electric vehicles more accessible while providing a new platform for brands to advertise.

Zoli and Isaac came on Shark Tank seeking $500,000 for a 2% equity stake in WaiveCar. They believed their business model could change both the car rental and advertising industries. The question was whether the Sharks would see the potential in their idea. Would they invest in this innovative approach? Find out in our WaiveCar Shark Tank Update!

WaiveCar Net Worth

Zoli Honig and Isaac Deutsch asked for a $500k investment in exchange for 2% equity in their company, WaiveCar. This meant they valued their company at $25 million. They made a deal with Kevin O’Leary for a $500k loan in exchange for 2% equity and an 80% discount on any unsold advertising space. This new deal maintained the valuation of their company at $25 million. However, WaiveCar struggled after Shark Tank, and by early 2020, the company ceased operations. As of today, WaiveCar is discontinued, and its projected net worth is $0.

WaiveCar Shark Tank Update

What Happened To WaiveCar After Shark Tank?

WaiveCar has discontinued. The business is no longer running. However, Zoli and Isaac have joined ReefDrive. They rent out fun utility vehicles instead of the older electric cars. At the moment, they are in Santa Monica, LA, and Miami.

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Mark was the first Shark to opt out of the deal. He expressed his concerns that the advertising market is oversaturated. Lori was also skeptical. She noted that the business model is easily replicable. For those reasons, she declined the opportunity. Chris entered into a heated discussion about the viability of the business. Ultimately, he, too, decided to pass. Two Sharks presented the pair with offers. Barbara offered $500,000 for a 10% equity in the company. Kevin proposed $500,000 as a 36-month loan with a 12% interest rate in exchange for 4% equity in the company. The duo negotiated with Kevin and walked away with his offer. 

Shark(s) Name	Offer and Demand	Counteroffer	Accepted?
Mark Cuban	Out	N/A	N/A
Lori Greiner	Out	N/A	N/A
Barbara Corcoran	$500,000 for a 10% equity in the company	$500,000 for a 5% stake	No
Kevin O’Leary	#1: $500,000 loan for 3 years at 12% interest in exchange for 4% equity and any unsold advertising space #2: $500,000 loan for 3 years at 12% interest in exchange for 2.5% equity and 80% discount on any unsold advertising space #3: $500,000 loan for 3 years at 12% interest in exchange for 2.25% equity and 80% discount on any unsold advertising space	Yes ($500,000 loan for 3 years at 12% interest in exchange for 2% equity and 80% discount on any unsold advertising space)	Yes ($500,000 loan for 3 years at 12% interest in exchange for 2% equity and 80% discount of any unsold advertising space)
Chris Sacca	Out	N/A	N/A

Founders Backstory

Zoni Honig and Isaac Deutsch recognized the challenges within the traditional car rental industry. This led them to find WaiveCar. It was a company designed to revolutionize the rental model by offering free electric car rentals funded by advertising. This innovative solution made electric vehicles more accessible to the public. It also provided a unique platform for advertisers to increase their brand visibility. Additionally, their model provided an impactful way to reach potential customers.

Initial Pitch

The pair walked into the Shark Tank with a clear vision. They seek $500,000 in exchange for a 2% equity in their company. Their business model offered free electric car rentals and was funded by advertising. It was designed to promote electric vehicle usage. The concept aimed to solve the challenges of expensive car rentals and advertise businesses.

The duo explained how their advertising system was truly innovative. It utilized advanced technology to maximize effectiveness. They used onboard GPS and 4G technology to deliver ads based on the car’s location. This meant that as the car moved, the ads changed to match the area. It made them more relevant and impactful for viewers.

Queries About the Product

Lori was impressed that WaiveCar had only been in operation for five months. She had already spotted their cars in Santa Monica. The brand’s visibility caught her attention. Kevin was curious about what happened after the first two hours of free driving. He was informed that users are charged $5.99 per hour after the initial free period. Barbara inquired about where the cars needed to be returned. The founders explained that users could park their cars in any public parking space in Santa Monica. This offered flexibility and convenience to customers. 

Mark focused on the financials, asking about the car’s break-even point. It was revealed that each car would break even after generating over $1,500 in revenue per month. He then asked how much the company had raised so far. They proudly shared that they had secured $1.3 million and had over 4300 users. Barbara followed up by asking when the company expected to turn a profit. The response was that as the fleet of cars grows, so will their revenue. This would eventually lead to profitability. 

Chris was interested in what set WaiveCar apart from other competitors in the market. The founders highlighted their custom screening technology. They explained how it displayed targeted ads based on the vehicle’s location. Kevin further questioned their present number of advertisers and was told about the two advertisers they had. 

Shark’s Response and Final Deal

Mark expressed concern about the industry being highly saturated. He emphasized the challenge of scaling in such a competitive market. He decided to step out of the deal. Lori echoed some of Mark’s concerns. She was particularly worried that WaiveCar’s product could easily be replicated by competitors. For those reasons, she was out, too. Chris pointed out that the company lacked proprietary technology and had only secured two advertisers so far. He described their business as more of an experimentation than a fully developed venture. Chris felt that the product lacked a distinctive edge. He declined the opportunity to invest.

However, Kevin saw potential in the business. He believed in their vision and made them an offer. He offered them a $500,000 loan for 3 years at 12% interest in exchange for 4% equity and any unsold advertising space. Barbara also made an offer of $500,000 for an equity of 10%. Zoli and Isaac countered Barbara’s offer with a lower equity, but she didn’t budge. They proposed an equity offer of 1% to Kevin, coupled with an 80% discount on any unsold advertising space. Kevin countered with a request for 2.5% equity. The duo responded with a counteroffer of 2%, to which Kevin proposed 2.25%. On negotiating, they closed a deal with him for a $500,000 loan for 3 years at 12% interest in exchange for 2% equity and an 80% discount on any unsold advertising space.

Product Availability

Unfortunately, WaiveCar’s social media activity ceased in October 2019. Early in 2020, an insurance issue led to the suspension of the Cal State LA program. Although temporary notices suggested that the service would resume, it ultimately did not.

Conclusion

Zoli Honig and Isaac Deutsch entered the Shark Tank seeking $500,000 for 2% equity in WaiveCar. Their company offered free electric car rentals funded by advertising. The Sharks had mixed reactions to the business model. Mark Cuban and Lori Greiner were worried about the saturated market of this niche. They also felt that competitors could easily replicate their idea. Chris Sacca passed as well. He believed the business lacked a strong edge and had too few advertisers.

Kevin O’Leary, however, saw potential in the concept. He offered a $500,000 loan for 3 years at 12% interest in exchange for 4% equity and any unsold advertising space. Barbara Corcoran also made an offer but at a higher equity stake. After negotiating, Zoli and Isaac accepted Kevin’s deal. They secured a $500,000 loan, 2% equity, and an 80% discount on any unsold advertising space. Unfortunately, WaiveCar struggled after Shark Tank. By early 2020, the company stopped operating. Their innovative idea couldn’t sustain momentum in a tough market.