There is an urban problem i.e, Parking ticket. Many people find it difficult because of unclear parking rules and shortage of space. They faced the issue of being fined without knowing how to contest them.
David Hegarty and his friends also faced this challenge. He viewed the parking ticket system unfair because the ticket department forces people to give quotas for their ticket insurance.
David gave a solution for this problem that was Fixed app. This app helps people to contest unfair parking tickets. This app is very easy to use and if the ticket seems contestable to the app, it will pay the contest on the user’s behalf.
David was in search of $700,000 for 5% equity in the company. He presented the app to the Sharks and requested them to contribute for his company so that he can expand his company.
Fixed App Net Worth 2024 Shark Tank Update
David Hegarty was looking for an investment of $700,000 in exchange for 5% equity in the company. At the time of the episode, he valued his company, Fixed, at around $14 million. David successfully secured a deal with Mark Cuban for an investment of $700,000 for 7% equity in the company. The investment adjusted the company’s net worth to around $10 million. However, the deal with Mark Cuban was never closed after the show. Fixed faced operational and regulatory challenges and was eventually acquired by Lawgix in 2016 for an undisclosed amount. As per my rough estimate, the current net worth of Fixed in 2024 is around $0 since the company is no longer operational.
Shark(s) name
Offer & Demand
Counteroffer
Accepted?
Kevin O’Leary
Out
N/A
N/A
Chris Sacca
Out
N/A
N/A
Lori Greiner
Out
N/A
N/A
Robert Herjavec
Out
N/A
N/A
Mark Cuban
$700,000 for 7%
N/A
Yes
Founders Backhistory-Initial Pitch
David faced several challenges in the ticket system. He was so annoyed with this lengthy, confusing and unfair process. He had seen many people including his own friends paying quotas due to lack of knowledge. His point of view was that parking tickets are a technique used by cities to generate revenue. This situation inspired him to create an app for the parking system. Hence, he made a Fixed app.
In the early stages, David faced some issues in establishing a reliable system for analyzing tickets, finding errors and a valid reason for contest in sourcing appropriate natural ingredients which should be affordable and effective. Moreover, he had to focus on local traffic rules and ensure that this app can handle everything efficiently. And, to secure initial funding and gain attraction in a competitive market was a hurdle.
David presented his app to sharks, and elaborated the steps on how to use this app. This app allows the user to take a picture of the ticket and then the app will thoroughly check for any contest the user has to pay. In case the ticket shows a valid reason for contest, the user will have to pay only 25% of the fine. Otherwise, the user has to pay nothing. Moreover, Fixed had a 20-30% success rate in getting tickets dismissed.
They charged a 35% fee on the original ticket price for successful contests. The company had $80,000 in revenue that year and a customer acquisition cost of $4-5 per ticket. David was seeking $700,000 for 5% equity in business. He requested the Sharks to invest in his company. Mark offered him $700,000 for 75 equity in his business but the deal was not closed after Shark Tank.
Queries, Shark’s Response, & Final Deal
Sharks had various questions about the app. Herjavec and were concerned about the scalability of the app. He was doubtful about the time period for which the app takes to become popular. Kelvin said that it will reduce the government revenue. Grenier also felt uncomfortable to contribute because of her several doubts. Sacca raised his concern about the future as urban transportation evolves.
The sharks were a bit confused for which David elaborated the simplicity of using the app and less chance of getting fined. He also mentioned that his company generated $80,000 in revenue from this app. His plan was to expand the service for speeding tickets and other violations, which result in providing a legal, and fair service to the people.
Lori Greiner, Herjavec, Kelvin, and Sacca all decided to refuse to contribute because of various reasons such as scalability, and Government revenue, etc. Mark Cuban was interested and so he offered $700,000 for 7% equity in the business. David accepted his offer. However, it is noted that the deal between David and Cuban never closed.
What Went Wrong With Arber On Shark Tank?
Sharks excused themselves from contributing for David’s Company. There were several questions including scalability of the app, whether this app will be able to handle large number of people and can pay their quotas on their behalf. Also, sharks were confused about the profitability the company could be. David also mentioned the revenue he generated in recent year. But the Sharks didn’t accept the offer. On the other hand, Mark Cuban agreed to contribute. He offered David $700,000 for 7% equity in the business for which David agreed.
Various challenges faced by the company like low profit margins, saturation of the users, scalability, etc. Another negative point was reduction in Government revenue. They were worried whether the company would be able to handle a huge amount of people and generate profit. These factors made Sharks confused to contribute their investment for the company.
Sharks opted out because of lack of profit margins and scalability, saturation, and uncertainty about the future trends. They were doubtful about the Fixed app future. They thought about the company’s growth. These questions in their mind made the deal risky for the Sharks.
Product Availability
Initially, Fixed app was available in San Francisco, Oakland, and Los Angeles, with plans to expand to other major U.S. cities like Washington D.C., Chicago, and Seattle over the course of 2015.
This app was free to download and It is available for both iOS and Android devices.Moreover, there is a website too. Fixed charged $1.95 fee to cover credit card processing expenses. If the ticket was successfully contested, Fixed would take a 25-35% success fee of the original amount.
Mark Cuban and David had a deal in Shark Tank but that deal was never closed. After Shark tank appearance, Fixed faced many challenges and gave up to continue. In October 2015, the Fixed company was blocked from municipal websites in San Francisco, Oakland and Los Angeles. This company faced many operational challenges. In 2016, Lawgix, a firm bought this business for an undisclosed amount. The Fixed website isn’t seen any more.
Conclusion:
David Hegarty, the founder of Fixed, presented her apps to the Sharks. presented her company’s products to Shark tank. Fixed was a ticket parking system app. This app provided legal service to the users. The app thoroughly checked the tickets and in case a valid reason for fine is seen, the app had paid 75% of the consent on the behalf of the user. The other 25% had to be paid by the user.
David was seeking $700,000 for a 5% stake in his company. Sharks didn’t accept his offer except Mark Cuban. Mark offered exactly $700,000 but for 7% equity in the business. However, after Shark Tank this deal was not closed due to operational and regulatory issues. Now, the company is not working anymore. The business was bought by a firm in 2016.
Hello, Fareena Khan here. I am an Electrical Engineer with a passion for innovation and technology, and now, I am pursuing my master’s degree from NUST, Islamabad. I have been watching Shark Tank for the past 2 years, and then, it served as a way to kill my free time. It’s inspiring to see how ordinary people, with determination, creativity, hard work, and consistency, can achieve extraordinary things. Moreover, the curiosity of whether the company owner will strike the deal or not makes the program more interesting. This show can be a cause of motivation for others who want to go for business in future.
