By: Aseem Gaurav on June 23, 2011
Mobile social network Loopt wants to give an interesting spin to the deal-of-the-day space (popularized by Groupon) by launching a new service called U-Deals, which lets the customers create the deal, including the discount.
Instead of getting a large inventory of deals at local businesses, U-Deals lets users request their own deals. After submitting an idea for a deal, users then promote it in social media channels like Faceobok, Twitter and if the idea/deal receives thumping support then Loopt will contact the merchant and request the business owner to turn the deal into reality. And if all the things go well, you get the deal.
According to Loopt CEO Sam Altman, Loopt and the small businesses will split the revenue from the deal.
The concept is great, which you can even call it a crowdsourced Groupon, as it eases the efforts that the deal site has to put in to get the merchant to offer a deal.
The company has even tasted its first success as Virgin America has agreed to offer 500 $35 vouchers worth $100 in credit for fall flights out of San Francisco. The deal went on Twitter and sold out in 48 minutes.
This particular deal may have got the jumpstart but it is not that every other deal will meet the same fate. The deal has to be realistic in terms of the size and value of the deal, otherwise it will fall to the ground head first.
Altman says the U-Deals model is much better than the original daily-deal model since only those deals are created which people actually want and at the same time lets businesses reward loyal customers.
