Scoutmob

Scoutmob is an Atlanta-based startup company that provides location-aware coupons to users on their mobile phone. Scoutmob currently provides users deals in Atlanta, Austin, Boston, Chicago, Dallas, Denver, Los Angeles, Nashville, New York, Portland, San Francisco, Seattle, and Washington, D.C. The website also has a mobile app available for Android, BlackBerry, and iPhone users.[1] The site provides deals to local food and drink venues as well as shops.[2] Deals offered on Scoutmob are free, so users can decide to get the deal on the platform but will only pay when they redeem it at the venue.[3]

Business Model

Scoutmob differentiates itself from sites like Living Social, a deal-of-the-day website that features discounted gift certificates usable at local or national companies and Groupon, a deal-of-the-day website that features discounted gift certificates usable at local or national companies. by providing users deals on their mobile phone and by being instantly redeemable.[4] Deals are presented daily and have a "limited time discount". After choosing the deal, users have the option to have a notification be sent to their email or to have it be directly sent to their mobile phone. Smartphone owners can also redeem the deals on the Scoutmob app. The user can redeem it at their convenience. Although deals move quickly, once claimed, users can take their time to use it.[5] Deals on Scoutmob are for locals places "that locals actually go to".[6] Scoutmob makes money by “charging the merchant once the coupon is redeemed, which is tracked by the GPS in a user’s phone” [7]

History

Scoutmob was founded in 2010 by David Payne and Michael Tavani as an offshoot of another Atlanta-based company that provided customized wifi accounts to local businesses. The company started in Atlanta and quickly expanded to other cities in the United States.[8] As of April 2011, the company had raised $1.5 million in financing and has plans to continue expanding.[4] The site has been described as a mix between other coupon websites like Groupon and Living Social, but also combining location-based dynamics like FourSquare.[5] Deals on Scoutmob are for locals places "that locals actually go to."[6] Scoutmob visits all of the daily deal locations and take the pictures but Scoutmob makes money by “charging the merchant once the coupon is redeemed, which is tracked by the GPS in a user’s phone” [7] Scoutmob can be used in various locations when shopping on Shoppe, but not for location exclusive products.

Funding

In April 2011, it was announced that the company raised $1.5 million in financing. The funding was led by New Atlantic Ventures and it and the company planned to use it to expand to more cities and hire more individuals. Prior to this investment from New Atlantic Ventures, the company had received funding for various angel investors in the Atlanta area.[5]

Partnerships

Scoutmob has partnered with Foursquare to provide deals to users. Foursquare allow users to "check in" or say where they currently are, once they "check in" users can get Scoutmob deals from the Foursquare application directly. This process provides a seamless ways for users to get Scoubtmob deals from "checking in" on Foursquare.[9]

For better user experience, Google partners with Scoutmob for providing location based coupons and deals without check in.[10]

Online Coupon Trend

Scoutmob is a part of the “tech-savvy” coupon trend that has emerged. Studies have stated that coupons have become increasingly popular “among a nontraditional population -- those who are urban, well-to-do and tech-savvy”. Couponing allows people to get things at a decreased price and may help bring loyal customers back to a particular business. Other websites that are a part of this trend include: Groupon, LivingSocial, BuyWithMe.[11]

Related Links

References

  1. ↑ "Scoutmob - Mobile Deals". Scoutmob. Retrieved 30 November 2011.
  2. ↑ "Scoutmob". Crunchbase. Retrieved 30 November 2011.
  3. ↑ Wollman, Dana (26 February 2011). "Review: So many coupon sites, so little time". USA Today. Retrieved 30 November 2011.
  4. ↑ 4.0 4.1 Frommer, Dan. "Scoutmob, A Mobile Local Deals Service, Launches In 10 New Cities And Raises $1.5 Million". Business Insider. Retrieved 30 November 2011.
  5. ↑ 5.0 5.1 5.2 Lee Harris, Rachel (6 January 2011). "Weekend Miser". New York Times. Retrieved 30 November 2011.
  6. ↑ 6.0 6.1 "Scoutmob - How it works". Scoutmob. Retrieved 30 November 2011.
  7. ↑ 7.0 7.1 Barbierri, Cody. "Scoutmob lands $1.5M more for location-based group deals". Venture Beat. Retrieved 30 November 2011.
  8. ↑ "Scoutmob tries to outdeal Groupon". Reuters.
  9. ↑ "Foursquare Rolls Out Scoutmob Daily Deals". Mashable. Retrieved 30 November 2011.
  10. ↑ "Google partners with Scoutmob Couponing app". coupons lady. Retrieved 1 November 2013.
  11. ↑ Gross, Doug. "The new frugal: Tech-savvy coupon clippers". CNN. Retrieved 30 November 2011.