Why WaiveCar is no longer in business

Electric cars are expensive, but Zoli Honig and Isaac Deutsch have created a way for people to drive them for free for a limited time. Their ride-sharing startup, WaiveCar, makes it all possible. Advertisers pay for the ride because their ads will be displayed on the vehicle. The founders pitched the company on Shark Tank and landed a deal with Kevin O'Leary. Since WaiveCar ceases operations, its value is $0.

Founder

Zoli Honig is an entrepreneur from Miami, Florida who studied mechanical engineering at NYU Polytechnic School of Engineering and then economics at Queens College. To support his studies, he works as an IT consultant at KJ Technology Consulting.

While in college, he founded two startups: Berrylicious Yogurt and ZZ Tech. Both companies have been active for more than three years. Zoli has since focused on two new companies: Chalkable and VISR. He's been very open about his background, but the same can't be said for his co-star Isaac Deutsch.

Founded WaveCar

As electric cars became more popular, the two gentlemen came up with the idea of ​​starting a car-sharing service. Zoli and Isaac plan to open the first car-sharing service using only electric vehicles.

What's more, they let customers drive for free for two hours. The ride was paid for by the company that posted the ads on the bus. If users exceed the time limit, they will be charged $5.99 per hour.

WaiveCar launched in 2016 and more than 3,000 people in Santa Monica have signed up for their app. Shortly thereafter, they signed a one-year cooperation agreement with Hyundai Motor and launched 180 new vehicles in Los Angeles.

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Shark Tank Appearance

The startup has gained significant traction within five months of its launch. Zoli Honig and Isaac Deutsch think that's enough to convince some investors to fund their expansion. They appeared on Season 9 of “Shark Tank” seeking $500,000 for a 2% stake.

The Sharks were divided. Mark Cuban and Lori Greiner think the business model isn't solid enough. Guest Shark Chris Sacca thinks this is nothing new as other companies are already doing it.

Barbara Corcoran and Kevin O'Leary made offers, but the latter insisted on acquiring WaiveCar. O'Leary issued a $500,000 loan at 12% interest in exchange for 2% equity and an 80% discount on unused advertising space.

After Shark Tank

Following up on Shark Tank, WaiveCar has expanded beyond California and launched its new car in New York as a test. Additionally, they had a partnership program with California State University, which unfortunately ended in 2020.

Since then, the company has faced many challenges. They eventually shut down their app and website. On social media, they teased the possibility of a return one day, but it seems possible.

The founders later launched “Waive Work,” a variation on their old business model. Waive Work rents out cheap electric cars to people who want to make money driving for Uber and Lyft. The venture failed to gain a foothold in the market and ultimately failed. Competition in the ride-sharing industry is fierce, and even Uber struggles to make a profit.

WaiveCar was acquired by REEF Technology for an undisclosed amount, according to Crunchbase. The company was not yet profitable and had just 250 cars on the road at the time of trading. Both co-founders now work at REEF, a real estate startup that transforms parking facilities.

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Categories: Shark Tank
Source: svlsf.edu.vn

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