Surprise Ride Activity For Kids
NO DEAL
EPISODE SUMMARY
🕓 Air Date: November 15, 2013
Asking For:
$110,000 for 10%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Surprise Ride is a monthly subscription service that provides interactive activities and supplies to engage kids in learning about various topics while spending quality time with their families.
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Background Story
Surprise Ride, based in Washington, D.C., was founded by sisters Rosy and Donna Khalife, who shared a childhood shaped by resilience and a thirst for knowledge. Born into a family of six, the Khalife sisters endured the turmoil of war in Lebanon before immigrating to Canada. Raised in a humble environment, their parents instilled in them the belief that anything is possible with determination and creativity. Donna Khalife, driven by her aspirations, pursued her dream of attending Harvard University, defying the odds stacked against her.
Meanwhile, Rosy Khalife embraced the opportunity to study abroad, broadening her horizons and enriching her understanding of the world. Their shared experiences and the challenges they overcame inspired the Khalife sisters to create Surprise Ride. Fueled by their passion for education and their own childhood adventures, they envisioned a product that would empower families to embark on exciting learning experiences together.
Understanding the struggles parents face in keeping children engaged and entertained, they sought to provide a solution that would not only captivate young minds but also foster bonding and quality time among family members. With their diverse backgrounds in finance, marketing, and a shared commitment to social entrepreneurship, Rosy and Donna leveraged their skills and experiences to bring their vision to life. Surprise Ride emerged as a manifestation of their belief in the transformative power of curiosity and exploration, offering families a unique and immersive learning experience delivered straight to their doorstep.
The Product
Surprise Ride offers a monthly subscription service designed to engage children in interactive learning experiences while fostering family togetherness. Each month, subscribers receive a curated box filled with themed activities and supplies, carefully selected by experts to spark curiosity and creativity.
The Surprise Ride experience begins with the arrival of a themed box at the subscriber’s doorstep. Inside, children discover a variety of hands-on activities, educational materials, and all the necessary supplies to embark on their adventure. From science experiments and art projects to history lessons and cultural explorations, each box is thoughtfully crafted to provide hours of fun and learning.
Parents can choose from various subscription options, including 6-month or 12-month plans, with prices starting at $24.99 per month. Subscribers have the flexibility to select the subscription duration that best suits their family’s needs and budget.
The benefits of Surprise Ride extend beyond entertainment, offering parents a convenient solution to combat boredom and screen time while promoting meaningful interactions with their children. By providing a platform for shared experiences and learning, Surprise Ride nurtures curiosity, creativity, and lifelong skills in children, all while fostering a strong bond between family members.
How It Went
The company’s position before Shark Tank
Surprise Ride has shown promising growth since its inception, demonstrating a healthy position in the market and strong potential for further expansion. The company has successfully shipped nearly 800 boxes and acquired over 220 active members within just four months of operation, indicating a positive reception among its target audience. The founders, Rosy and Donna Khalife, have strategically positioned Surprise Ride in the education and subscription service sectors, leveraging their backgrounds in finance, marketing, and social entrepreneurship. Their commitment to providing quality learning experiences for children while promoting family bonding has resonated with customers, driving subscription sign-ups and customer satisfaction.
Surprise Ride has established partnerships with experts in various fields to curate high-quality activities for its subscription boxes, ensuring engaging and educational content for subscribers. Additionally, the company operates with a fulfillment center in Florida, streamlining assembly and delivery processes to enhance efficiency and customer experience. In terms of funding, Surprise Ride has secured $100,000 from Irwin Jacobs, the founder of Qualcomm, through a convertible note. This infusion of capital has provided the company with the necessary resources to support its growth initiatives, including marketing efforts and inventory management.
With a focus on scalability and profitability, Surprise Ride maintains a healthy profit margin of 50%, allocating funds towards merchandise, shipping, and fulfillment costs. The company’s streamlined business model and efficient operations allow for prudent financial management and sustainable growth. Surprise Ride is structured to capitalize on its strengths in product development, marketing, and customer engagement, with a dedicated team committed to delivering innovative learning experiences for children and families. As the company continues to expand its reach and offerings, it remains well-positioned to capitalize on opportunities in the ever-evolving education and subscription service markets.
The Negotiations:
During the negotiations on Shark Tank, the founders of Surprise Ride, Rosy and Donna Khalife, sought $110,000 for a 10% stake in their company. While showcasing the innovative subscription service, which garnered praise from the Sharks for its quality and appeal, the sisters faced tough questions about their business model and scalability. Robert Herjavec made the only offer, proposing $110,000 for a 25% stake. However, he emphasized the executional risk and the need for realistic projections, prompting hesitation from the founders.
Mark Cuban and Lori Greiner expressed concerns about the founders’ ability to handle the hustle required to succeed in the competitive market. Despite encouragement from Lori, who admired their determination as women in business, the Khalife sisters ultimately left the tank without a deal. The Sharks felt the valuation was too high and questioned the company’s readiness for significant growth.
While Rosy and Donna considered Robert’s offer, they ultimately declined, seeking further validation and exploration of their options. The negotiations highlighted the importance of realistic projections, executional prowess, and strategic planning in securing investment. Although they left without a deal, the Khalife sisters remained steadfast in their mission to bring curiosity and learning to children worldwide.
