Coolpeds – Electric Briefcase-Scooter
NO DEAL
EPISODE SUMMARY
🕓 Air Date: February 18, 2018
Asking For:
$250,000 for 5%
Investor:
No Deal
Deal:
No Deal
PRODUCT SUMMARY
Coolpeds USA designs and manufactures lightweight electric vehicles, including the world's first super lightweight electric briefcase-scooter, aiming to provide fun, reliable, and affordable green transportation.
WATCH HERE
IN A RUSH?
Click these to jump to the section you want to read.
Background Story
Tony Chan, the founder of Coolpeds USA, hails from Los Angeles, California. His passion for cars started at a young age, as he began waxing cars for neighbors at the age of 7. During his college years at UCLA, Chan ventured into buying, repairing, and reselling classic cars to fund his education. This background in the automotive industry, coupled with over 15 years of experience in racing cars and building racecars, equipped him with valuable knowledge and relationships.
Coolpeds USA was born out of Chan’s mission to provide green transportation to a global audience. The company’s focus on lightweight electric vehicles aligns with the growing demand for eco-friendly and convenient personal transportation.
The Product
Coolpeds USA’s flagship product is the world’s first super lightweight electric briefcase-scooter. Weighing only 11 pounds, it offers a convenient solution for short-distance commuting, such as traveling to and from train stations, offices, campuses, and even airport boarding gates.
The scooter features a removable bag, making it easy to carry and store. With a top speed ranging from 7 to 15 miles per hour and regenerative braking, the scooter provides an enjoyable and eco-friendly travel experience. The removable battery allows for versatile charging options, including charging on the go and even powering external devices like phones.
Priced at $399, the scooter is positioned as an affordable and efficient means of personal transportation. Coolpeds USA aims to enhance user experience by offering its own line of luggage, designed for safety and rigidity.
How It Went
The company’s position before Shark Tank
Over the past 18 months, Coolpeds USA has achieved sales of approximately $500,000, primarily through online channels. The company’s decision to focus on online sales is driven by the product’s suitability for this distribution method. While the profit margin for the scooter is not explicitly mentioned, the $399 retail price and $170 landed cost suggests a margin that may be constrained for traditional distribution channels. Coolpeds USA has filed a material patent for its product, emphasizing its commitment to innovation and the protection of intellectual property.
Chan’s background and experience in the automotive industry have likely contributed to the company’s success and relationships within the market. However, the introduction of a new product, the Ampere, a fully electric highway-ready sports car priced under $10,000, indicates a significant expansion of Coolpeds USA’s product line. While the electric car market is described as competitive, the company plans to start taking pre-orders soon. The transition from scooters to cars, while ambitious, raises questions about the company’s focus and strategy.
The Negotiations:
Despite Tony Chan’s charismatic pitch and a successful demonstration of the scooter, the sharks expressed concerns about the dual product offering. The unexpected introduction of the Ampere, a fully electric highway-ready sports car, raised further questions about Coolpeds USA’s focus. The sharks, including Kevin O’Leary and Mark Cuban, were skeptical about the scooter’s market potential, especially in busy locations like airports.
The $250,000 investment for a 5% stake did not entice any of the sharks, leading to Tony leaving the tank without a deal. Robert Herjavec, while impressed with Tony’s passion and the success of the scooter, ultimately couldn’t commit due to the dual focus on scooters and cars, urging Tony to choose one path. In the end, Coolpeds USA left the tank without securing a deal, with Robert Herjavec expressing admiration for Tony’s achievements but emphasizing the need for a more focused business strategy.
