WaiveCar Update | Shark Tank Season 9

WaiveCar entered the Shark Tank in Season 9 with a bold vision: to revolutionize the car rental industry with free electric vehicle rentals funded by advertising.

Founders Zoli Honig and Isaac Deutsch hoped to secure investment to scale their innovative business model. But did the sharks bite?

And what happened to WaiveCar after the show?

Let’s dig into the WaiveCar Shark Tank pitch, the sharks’ responses, and a full update on where the company is today.

WaiveCar Shark Tank Pitch Recap

• Entrepreneurs: Zoli Honig and Isaac Deutsch

• Business Model: Free electric car rentals, funded by digital advertising on vehicle rooftops

• Shark Tank Ask: $500,000 for 2% equity

• Final Deal: $500,000 loan at 12% interest for 2% equity + discount on unused ad space

• Shark Who Invested: Kevin O’Leary

How WaiveCar Worked

WaiveCar allows users to rent an electric car for free for the first two hours, with a $5.99 per hour charge afterward.

The service made money through advertisements displayed on digital billboards mounted on the cars.

The founders partnered with Hyundai to secure vehicles for their fleet, using models like the Hyundai IONIQ and Chevy Bolt.

Shark Reactions & Investment Breakdown

Each shark had strong opinions about WaiveCar’s business model. Here’s a breakdown of their responses:

Shark	Response	Reason
Kevin O’Leary	Invested	Offered a $500,000 loan at 12% interest for 2% equity + 80% discount on unsold ad space
Barbara Corcoran	Rejected	Wanted 10% equity for $500,000, which the founders declined
Mark Cuban	Rejected	Concerned about advertising revenue sustainability
Lori Greiner	Rejected	Not interested in the car-sharing industry
Chris Sacca	Rejected	Had a heated exchange with the founders and bowed out

Despite multiple rejections, Kevin O’Leary (Mr. Wonderful) saw the potential in WaiveCar and structured a deal to mitigate his risk while benefiting from ad revenue.

WaiveCar Shark Tank Update: Post-Show Growth & Challenges

After securing Kevin O’Leary’s investment, WaiveCar expanded and launched a fleet at Cal State LA.

However, the company soon faced challenges that led to its decline.

Sales & Revenue Growth

Year	Revenue Milestone
2016	Initial Santa Monica launch with 3,000+ users in the first month
2017	Shark Tank appearance & Cal State LA expansion
2019	Operations were halted due to insurance issues
2021	WaiveWork acquired by REEF Technologies

Retail Expansion & Distribution Deals

Year	Key Expansion Milestones
2016	Launched pilot program in Santa Monica
2017	Expanded to Cal State LA
2020	Launched WaiveWork for electric car rentals
2021	Acquired by REEF Technologies

What Led to WaiveCar’s Downfall?

Despite early promise, WaiveCar faced several challenges that contributed to its decline:

• High operational costs: Keeping a fleet of electric vehicles running requires significant maintenance and insurance expenses.

• Advertising revenue challenges: The digital billboard ad model was innovative but struggled to scale profitably.

• Insurance and regulatory roadblocks: In 2020, WaiveCar shut down its Cal State LA program due to insurance issues.

• Pandemic-related setbacks: The COVID-19 pandemic halted university operations, further impacting WaiveCar’s growth.

Ultimately, WaiveCar pivoted to WaiveWork, a weekly electric car rental service.

But by 2021, REEF Technologies acquired WaiveWork, effectively ending the WaiveCar brand.

Where Are the Founders Now?

After WaiveCar, both Zoli Honig and Isaac Deutsch joined REEF Technologies to continue working on electric vehicle solutions.

Their new venture, REEF Drive, operates a similar car-sharing model under a different brand.

Final Thoughts: Lessons from WaiveCar’s Journey

WaiveCar’s story highlights both the potential and challenges of disruptive business models. Key takeaways from their journey:

• Innovative concepts can attract investor interest, but execution is key.

• Scaling a capital-intensive business requires strong financial planning.

•  Regulatory and operational challenges can make or break a startup in industries like car rentals.

•  A Shark Tank deal doesn’t guarantee long-term success—post-show execution matters.

While WaiveCar ultimately didn’t survive, its impact on EV adoption and ad-based business models remains a critical case study for entrepreneurs.

What are your thoughts on WaiveCar’s journey? Let us know in the comments below!