EZ VIP, the company featured on Shark Tank, faced challenges after the show and eventually went out of business.
Alashe Nelson founded EZ VIP with the idea to allow customers to pre-purchase VIP tables, bottle services, and event tickets. The company gained significant attention when Nelson appeared on the ABC reality show “Shark Tank” in 2012. He managed to secure an investment from sharks Daymond John and Mark Cuban. Despite the initial boost from the show, EZ VIP struggled to maintain momentum in the highly competitive nightlife industry.
After the Shark Tank episode aired, EZ VIP benefitted from the exposure, which led to an increase in users and partnerships with clubs in Miami and Las Vegas. However, the company faced several hurdles. The nightlife industry is known for its volatility and high turnover rates of clubs and promotional entities, which likely impacted EZ VIP’s ability to form long-term partnerships. Additionally, the company had to compete with established reservation services and direct bookings through venues, which may have offered more personalized experiences or better deals.
Moreover, the technology landscape was rapidly evolving, and new mobile apps and services were emerging, offering similar or more advanced features. This increased competition made it difficult for EZ VIP to differentiate itself and retain a loyal customer base.
Despite the initial investment and the strategic partnerships, EZ VIP was unable to sustain its business model. The company’s website eventually went offline, and its social media presence faded, indicating that the business had ceased operations. The exact reasons for the closure are not publicly documented, but it is clear that the challenges of scaling in a competitive market and maintaining a unique value proposition were factors that contributed to the company’s downfall.