Saddled up first to enter the Den are entrepreneurs Ben Knowles,
Robert Sargent and Chris Dickson, with a business they think
will change the way the world views travelling on two wheels.
We know we have something that works and we're looking for the help
to get it to the size it needs to be.
They believe their passion for pedal power,
coupled with their professional prowess,
is sure to secure them a deal in the Den.
We've got a product, we've got the expertise,
we look great.
I mean, you know, what could go wrong?
Hello, I'm Chris. I'm a cycling instructor and I manage training.
I'm Rob, web technologist, and I manage IT and finance.
I'm Ben, I'm in charge of operations.
Together, we are the directors of Pedal Me.
We're here today to ask for £100,000 in exchange for 5% of our business.
In cities all across the world, time and money is wasted for people
and their goods sitting in traffic, not going anywhere.
Pedal Me is a taxi and logistics service that offers fast
and convenient transport around cities for people
and their goods.
We approached a manufacturer in Amsterdam.
They built us this and we now have eight of them, ridden by highly
trained employees offering a service that is cleaner,
faster and better value than any competition.
Our customers love us and demand is accelerating.
Since we started trading in May 2017, we've seen an average
monthly revenue growth of around 50%.
This year, we expect to take £600,000 in revenue.
By year three, our target revenue is £10.5 million,
with a profit of £3.4 million.
The market is huge.
In London alone, there are 400,000 taxi and private hire vehicle trips
per day - worth around £1.3 billion.
And, together, we believe that we can make our streets better
places for everyone.
Thank you for listening and we'd like to invite
you to have a go on our bikes.
I want to have a go. I'll have a go.
I'm having a go.
Not in this skirt!
Hoping the Dragons will jump on board with their eco-friendly
transport business...
You have to sit at the front, Touker.
Hang on, hang on.
..are Ben Knowles, Robert Sargent and Chris Dickson.
All right, you ready? Ready. Yes.
Hey, we're cornering.
They're looking for £100,000 for just 5% of their people
and product delivery service.
Thank you.
Tej Lalvani is first to get the wheels of commerce in motion.
Hi. Look, I like what you guys are doing.
I mean, you know, anything to reduce pollution is great and congestion
in metropolitan cities is brilliant.
But if it's for transporting people as a taxi service... Yeah.
..it can be hugely weather dependent, you know. Mm-hm.
Britain, with its rain, snow, wind, etc. Yeah.
If you're taking passengers, they're not going to be dressed
in the right attire and they don't want to get, all of a sudden,
drenched if they're going to go for a meeting
or if they are going to visit friends. Yeah.
OK, so the bikes are equipped with these ponchos.
But do you think people would want to wear some stuff
which has been worn by 20 or 30 other people, smelling and...? Oh!
We expect our riders to be looking after the equipment to a degree
and also making sure everything is in order.
But it would be quite seasonal, because during the winter periods
you're not going to get people sitting on that.
In terms of balancing it, how easy is it to balance?
Because if you tip over, everyone falls over.
This is part of our control over the marketplace
because we have this syllabus and we train people to a very high
standard so that doesn't happen, but someone else trying to set
up from a competitor company would find that very difficult to do.
Uber could.
If Uber decided to do this...
Yeah.
..in one week, they'd put the team together.
OK. Would you agree?
Er, no, I wouldn't. You wouldn't agree? No.
Want to take a bet? Yeah.
Uber, with all their money... Yeah.
..you don't think they could hire a good cycling instructor?
Why can't Uber do it?
Because it's the skill gap.
It's very unlikely that they would have this combination of people
who understand how to use cargo bikes in cities,
a cycle instructor and someone who has the knowledge about tech.
There is no-one else...
How did you find them?
Can I tell you something, guys? Guys, you're delusional, right?
OK. You are delusional. OK.
If I wanted, tomorrow, find an instructor like you,
I'd have a queue of people in my office. Sure.
If I wanted to find a tech guy like you and I put an advert,
I'd have a queue of people.
If I wanted to find someone as cocky as you, it might be difficult.
A bad start for the entrepreneurs, whose refusal to accept
that their idea can be copied has infuriated Touker Suleyman.
Now, Deborah Meaden wants to get a handle
on the delivery arm of the business.
So, where are you operating at the moment?
At the minute, we're operating in London.
OK, so then I want these goods delivered here,
and I want them there, so, you know, what's that going to cost me?
So, the average cost of a journey, two-mile journey, is around £10,
and that would include a £2.50 pick-up fee.
So, what's your revenue - daily?
So, our revenue - daily - is £500 or £600.
This month, we're looking to take about £13,000 or £14,000.
On how many bikes?
Eight bikes.
And last question from me for a minute, how much do those cost?
£5,000 each.
£5,000 each. And are they bespoke to you, or...?
So, we had a limited degree of exclusivity,
which runs out in this month. Oh, right.
Our vision, to be clear, is not just about London.
Our vision is about franchises in cities all across the world.
Guys, the idea is not necessarily crazy.
Do we need to cycle more and be more healthy?
Of course we do.
However, what is crazy is you coming in with...£2 million valuation?
Yeah.
So, the valuation we put on the company is based on working
back from what we expect to take in three years' time.
In the future. Yeah.
So, when I go and buy a new house tomorrow,
you want me to pay the price that it's worth in three years' time,
rather than the price I can pay for it today, is that your mentality?
No.
Well, why would I pay...? Sorry. Why would I pay three years' price?
I wasn't clear. So, we're expecting the company to be worth somewhere
between 60 and 100 million in three years' time.
OK, but that is crazy. That is absolutely ridiculous.
But we are offering something that other people can't do.
What, a bike that I can go and get procured in the Netherlands tomorrow
and a set of riders and trainers?
You're not going to do it with my money and certainly not
with that valuation, so I'm out.
Jenny Campbell puts the brakes on investment and is the first
Dragon to exit the deal.
Could Peter Jones steer proceedings down a less rocky road
for the entrepreneurs?
I think the bike's fantastic and I think this would do quite well,
but this is really tough.
Coming in, a valuation of £2 million is incredibly naive. Mm.
To do something like this you probably needed to come
in and give 60 to 70% of your business away to raise
that type of capital to have a chance.
I'm not going to invest, so sadly I'm out.
I just think that the business model doesn't make sense financially
to me, as I think it will take a long,
long time before I get my money back and I'm going to be diluted
because you're going to have to keep raising funds,
so all the best, but I'm out.
I really want to love this,
but there's something about it that worries me.
You, actually, honestly, don't have a barrier to market.
You say it's training - I can train.
That isn't the barrier.
I understand completely why you think that, yeah.
That is saying, that is, just so you know,
I'm really good at interpreting what people say. Yeah.
What you've actually just said is you don't agree with me at all.
I just don't believe that other people are going to come in and find
people who can ride round multiple people on the front of their bikes
without having collisions.
Or 150 kilos of cargo.
You're like the voice out of the dark.
I haven't said much, have I?
He's a deep voice that comes in and he goes "150..."
You haven't said much, but it's very effective. It comes right in there.
That's why he does the training.
He scares the living daylights...
Not much scares me.
But I'm out.
A slightly unnerved Deborah Meaden is reluctant to hop on board
the city bike business, making her the fourth Dragon
to leave the deal.
The trio's investment now rests solely with their old adversary -
Touker Suleyman.
Has he had a change of heart over the viability of the business?
Look, guys, you all look very enthusiastic.
The problem is I see you guys as being a delivery service, working
with 50 brands, where you pick up all the time and you're delivering
on the same day.
Once you start going into the commuter world,
it's not going to work.
You either do one or the other.
There's so many brands who want that service.
Mm.
So, I'm going to make you an offer.
I'll give you all the money, but I want 45% of the business.
That's if you agree with my strategy.
OK. Thank you. Thank you.
I bet you didn't see that one coming, did you?
We believe in our business, so...
No, no, I didn't. Come on, be honest.
No, I didn't.
Cool, shall we go and have a chat? Yeah. Thank you.
An astonishing U-turn from Touker Suleyman, who is offering
all of the money for a sizeable 45% of the company.
I don't think I can do that to the existing investors.
Will the entrepreneurs be prepared to give up a much larger stake
than the 5% initially offered to secure investment and a Dragon
in the driving seat?
OK, Touker, we really appreciate your offer.
And we really appreciate your advice,
and we can see how we could make use of that,
but we don't think that that is something
that we want to make as a company. OK. Thank you very much.
For that reason, I'm not going to invest in your business. I'm out.
OK. Thank you. Good luck. Thank you.
On your bike.
The entrepreneurs just don't share Touker Suleyman's vision
for their business and they leave the Den without the £100,000
they were hoping for.
Slaughtered. Yeah. Absolutely.
INDISTINCT
We feel that it was a failure on our behalf to communicate
properly the full potential here.
We might be thought of as possibly a little bit
cocksure, perhaps, but I mean, I don't think
I've had my beliefs shaken in what we're doing...one bit.
Who wants to be pedalled around here? Pedal me?
Not if you're driving!