Yipit Says Tipping Point for Deal App ReachedPortfolio Nov 16, 2011 Back to press
The tipping point for a deal app has been reached, according to deal aggregator site Yipit, which just announced today that it is offering a free mobile app for iPhones that will let deal-seekers in 100 cities find offers on the go.
By taking it mobile, Yipit hopes to carve a niche by offering deals from deal sites of all sizes and types—and it may also prop up the numerous deal sites with less name recognition.
"Groupon and LivingSocial represent 75 percent of daily deal revenue, but only 20 percent of the deals," Jim Moran, cofounder of Yipit, said in a press release this morning. "That's our big opportunity: We send personalized offers from both large and niche players alike."
The free app will be available on the iPhone only initially and will feature customized deal recommendations from more than 750 sources, ranging from the biggies, such as Groupon and LivingSocial, to smaller providers of deals, such as Gilt City for luxury items and DoodleDeals, which is aimed at moms.
Company cofounder and CEO Vinicius Vacanti said that its users (it has some 400,000 users and is in 100 cities) have been asking for a mobile app for some time, but until now, the company didn’t think it necessary. Hard to imagine, but in the early days of daily deals, he says, New York City might just have five deals going on on any given day.
By comparison, there are currently 203 active deals from 46 sources in New York. You can do almost anything, he writes on the Yipit blog, noting that app users would find 33 daily deal offers for discount diners, six massage deals, five yoga places, and three offers to get their teeth whitened.
Vacanti told GigaOM that Yipit’s mobile app will some day feature instant deals like Groupon Now and that the company’s eventual goal is to provide access to all local promotions happening around their users, which suggests that real-time deals may not be far off.
That means Yipit will not only be competing with mobile apps from Groupon and LivingSocial, each of which has its own apps, it will also be going up against sites like Shooger, a crowdsourced deal-hunting network, and City Pockets, which also lets users buy and sell deals on the go.