WaiveCar Update | Shark Tank Season 9

Zoni Honig and Isaac Deutsch felt like the traditional car rental model was expensive and didn’t promote electric vehicles. So they created WaiveCar to address this by offering free electric car rentals funded by advertising, encouraging both electric car use and brand awareness for advertisers. This innovative approach aimed to solve the problem of expensive and under-promoted electric car rentals. Will the sharks go for a ride with this new company? Let’s find out in this WaiveCar update and pitch recap.

If you’re short on time, here’s a quick overview of what happened to WaiveCar after Shark Tank.

Zoli and Isaac pitched WaiveCar, their electric car rental service, on Shark Tank Season 9. They sought $500,000 for a 2% equity in the company. Ultimately, they secured a $500,000 loan from Kevin O’Leary with 12% interest, 2% equity, and a discount on unused ad space.

In terms of a WaiveCar update, the company is no longer operational. However, Zoli and Isaac have moved on to ReefDrive, a company that rents “fun utility vehicles” instead of electric cars.

Shark	Result
Kevin O’ Leary	Accepted offer of $300,000 for 15% equity
Barbara Corcoran	$500,000 for 10% equity
Lori Greiner	No offer
Chris Sacca	No offer
Mark Cuban	No offer

Shark Tank WaiveCar Pitch

• Entrepreneurs: Zoni Honig and Isaac Deutsch
• Business: Free electric rental cars with paid advertisements on the car
• Ask: $500,000 for 2% equity
• Result: $500,000 as a loan for 12% interest with 2% equity and 80% off of any unused advertising space
• Shark: Kevin O’Leary

In their pitch to the sharks, Zoli Honig and Isaac Deutsch explained that they started WaiveCar back in 2016. They also hinted at a key partnership with Hyundai to showcase the automaker’s new electric vehicle, the IONIQ, to the public. 

WaiveCar operates a unique business model. It secures its fleet of vehicles through a partnership with Hyundai, which allows it to offer drivers the first two hours of use completely free. After the initial free period, WaiveCar charges a rental fee of $5.99 per hour. 

To generate revenue and offset operational costs, WaiveCar uses the rooftops of their vehicles. They’ve installed electronic billboards that serve as advertising space. 

This allows businesses to reach potential customers while WaiveCar earns income through these ad placements.

WaiveCar’s advertising system is quite innovative. They leverage a combination of onboard GPS and a network of rooftop 4G towers to deliver targeted ads based on the vehicle’s location. This ensures that viewers see relevant advertisements as they travel. 

The entrepreneurs explained that they tested the idea with a pilot program in Santa Monica, the founders’ hometown. This location is ideal due to the city’s abundance of free parking spaces equipped with charging stations for electric vehicles. 

The only requirements for using the service are that drivers be 21 and have a valid license and a credit card. People reserve and pay for their vehicles through the Waive app.

WaiveCar’s pilot program in Santa Monica proved to be a success, attracting over 3,000 users in its first month. This initial test used vehicles from both Hyundai and Chevrolet.

Zoli and Isaac’s goal is to secure funding to expand their innovative car-sharing service to additional cities. 

After their pitch, Lori Greiner said she recognized WaiveCar’s idea, having seen their vehicles on the road. 

Barbara Corcoran asked about the car return process. The founders explained that users could conveniently return the vehicles to any electric charging station within the city. 

The cost of leasing each car was around $1,000 per month, with a break-even point (where income covers expenses) of roughly $1,500 per month per car.

While they had previously secured $1.3 million in funding, achieving profitability in the pilot program required maximizing the usage of all 20 cars in their fleet. 

This meant generating $5,000 in revenue per car each month. If achieved, this would translate to $300,000 in annual revenue. 

However, to significantly increase profitability, they needed to expand their fleet and have more cars available for rent. 

Mark Cuban and Lori expressed concerns about the advertising market and potential competition, and for this reason, they dropped out of the deal. 

Guest shark Chris Sacca also exited the deal after a heated discussion with the entrepreneurs. 

Kevin O’Leary proposed a $500,000 loan for 3 years at 12% interest in exchange for 4% equity and a discount on any unsold advertising space. 

Barbara also offered $500,000 but for a steeper 10% equity in the company. 

Zoli and Isaac countered Barbara’s offer with a lower equity, but she wouldn’t budge. They then presented a revised proposal to Kevin, offering the same loan terms with less company equity (1%) and an advertising discount. 

Kevin responded with a counteroffer that split the difference on the equity and met at 2.25%. Ultimately, they settled on a deal with Kevin: a $500,000 loan at 12% interest for 2% equity, along with a discount on any unused advertising space.

Let’s get a WaiveCar update and see where the company is at now. 

Shark Tank WaiveCar Update 

The deal with Mr. Wonderful eventually closed, and Kevin even promoted the company on his website. Shortly after the episode aired, WaiveCar deployed a fleet of vehicles for use on the campus of Cal State LA and the surrounding area. 

Unfortunately, WaiveCar’s social media went silent in October 2019. In early 2020, an insurance issue forced the Cal State LA program to shut down. 

While temporary signs indicated the service would resume, it never did. This coincided with the university’s closure due to the COVID-19 pandemic.

Zoli Honig and Isaac Deutsch then launched a new venture called WaiveWork, offering electric car rentals for a weekly fee. 

However, they attempted to use the same inactive social media accounts for this new business. 

In March 2020, Zoli joined REEF, a company focused on electric vehicle solutions, followed by Isaac in December 2020.

By December 2021, our WaiveCare update found that REEF acquired WaiveWork for an undisclosed amount. 

In September 2022, the WaiveCar website no longer function, and the domain is being redirected to REEF DRIVE, a similar electric car-sharing program offered by REEF.

Notably, both Zoli Honig and Isaac Deutsch continue to work at REEF.

It looks like this will be our final Shark Tank WaiveCar update.

You can find the other company updates from Season 9, Episode 7 here:

• Qeepsake Update
• GeoOrbital Update
• Pearachute Update

For more company updates, be sure to check our Shark Tank Season 9 page.