Hidrent Hire a Firefighter
DEAL
EPISODE SUMMARY
🕓 Air Date: November 12, 2021
Asking For:
$300,000 for 8%
Investor:
Robert Herjavec, Lori Greiner (50/50)
Deal:
$300,000 for 33%
PRODUCT SUMMARY
Hidrent is a mobile app that connects homeowners with local firefighters for help with various household tasks and projects.
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Background Story
Dave Heimbuch, the visionary behind Hidrent, brought a wealth of experience from his background in digital marketing and sales. His journey took a transformative turn when he was inspired by his brother-in-law, a dedicated firefighter. Dave recognized an unmet need in his community – the need for a trustworthy platform that could seamlessly connect homeowners facing daily household challenges with local heroes like firefighters who were not only trusted but also skilled in various tasks.
This spark of inspiration and his brother-in-law’s valuable insights into the world of firefighting led Dave to embark on a mission. In 2018, Hidrent was born, a mobile app designed to bridge the gap between those seeking help around the house and the local heroes willing to lend a hand. With his marketing acumen and the collaborative effort of firefighters, Dave’s vision quickly became a reality.
Hidrent made a strategic move by initially targeting the senior citizen demographic, recognizing that this group often required assistance with various household tasks. This focus, combined with expansion into key markets like Phoenix and Tampa, allowed the app to gain significant traction. Dave’s journey from digital marketing to creating a platform that connects communities with local heroes is a testament to his innovative spirit and dedication to making a positive impact on people’s lives.
The Product
Hidrent’s mobile app is a user-friendly solution that empowers homeowners to easily request assistance for a wide range of household tasks. Whether it’s the need to move heavy furniture, hang priceless artwork, or tackle any other home-related project, Hidrent provides a convenient and reliable platform for homeowners to connect with local heroes.
Local firefighters play a pivotal role in this system. They can register on the app, allowing them to receive notifications whenever homeowners require assistance. Firefighters can swiftly accept job offers and efficiently complete tasks.
To ensure a seamless experience, once a task is finalized, the firefighter inputs the hours worked, and Hidrent’s integrated system generates an invoice for the homeowner. This streamlined process ensures a hassle-free transaction, with homeowners paying approximately $72 per hour for the services they receive.
For the firefighters, Hidrent offers an attractive compensation of $60 per hour, making it a win-win for both parties involved. The app’s widespread recognition and success can be attributed to its strategic presence on popular platforms like Google, Facebook, and Nextdoor, making it easily accessible to a wide audience seeking reliable assistance for their household needs.
How It Went
The company’s position before Shark Tank
Hidrent’s journey has been marked by steady growth and a commitment to delivering value to its users. With cumulative sales of $850,000, the company has demonstrated its ability to gain traction in the home service industry. In 2020 alone, Hidrent generated $260,000 in sales, reflecting its increasing relevance and popularity among homeowners seeking reliable assistance for their household tasks.
A crucial aspect of Hidrent’s revenue model is its 23% commission on transactions, which ensures a fair compensation structure for both homeowners and the heroic firefighters providing their services. This commission fee aligns with industry standards and is a testament to the company’s commitment to facilitating transparent and beneficial interactions between users. Hidrent’s impressive market presence is underscored by its strategic positioning in 99% of American neighborhoods.
This widespread coverage means that the platform is readily accessible to a vast portion of the population, with one in three households having the opportunity to leverage the services offered by Hidrent. This expansive reach not only demonstrates the company’s commitment to serving communities nationwide but also positions it for further growth and impact in the home service industry. Hidrent’s performance thus far highlights its potential to continue expanding its footprint and providing valuable services to homeowners and local heroes alike.
The Negotiations:
During the negotiations on Shark Tank, Dave Heimbuch, the founder of Hidrent, initially sought $300,000 for an 8% equity stake in his company. However, Lori Greiner and Robert Herjavec were quick to make a joint offer of the full $300,000 but asked for a significantly larger equity share, proposing 33.3%. Dave, while appreciative of their interest, decided to negotiate further. He counter-offered with $300,000 for 20% equity. Lori and Robert firmly maintained that this equity share was still insufficient for their involvement and the risks associated with the venture.
Mark Cuban showed interest in the concept but eventually decided to step aside, citing the challenges of building a marketplace in local neighborhoods. Similarly, Kevin O’Leary was not convinced about the path ahead and opted not to invest. Ultimately, Dave accepted Lori and Robert’s offer of $300,000 for 33.3% equity.
This decision reflected his willingness to give up more equity than initially planned in exchange for the experience, guidance, and resources that Lori and Robert could bring to Hidrent. While he did concede a larger portion of the company, he recognized the value they would bring to help scale Hidrent and make it a success on a broader scale.
