Can Tippr take on Groupon?
When Google offered a reported $6 billion for Groupon, followed soon afterward by Amazon’s $175 million investment in LivingSocial, the focus on the daily-deals market put a spotlight on the third largest player in the market—Seattle-based Tippr.
Tippr was launched by Martin Tobias, former CEO of Imperium Renewables, a company that has struggled in recent years. Tobias says his latest venture is well-positioned to succeed in the red hot discount coupon sector because of its patents covering group buying and its unique business model.
The patents cover broad swathes of the business such as “demand aggregation through online buying groups,“ and were acquired from Paul Allen’s Vulcan Capital. It acquired the patents in connection with its support of Mercata, a group buying venture that collapsed during the dot-com bust. The company believes that many of its competitors are in violation of the patents. In December, the company announced its decision to license its patent portfolio to interested independent software developers, deal sites or publishers. The company says “numerous companies” are already licensing its patents.
Another Tippr advantage, Tobias says, is its “white-label” strategy of offering a technology platform on which businesses can offer their own service. Skylar Agnew, a founder of BestSeattleBars.com, for example, is in the business of promoting bars. Agnew is using the Tippr technology platform to offer his own discount coupon service. The coupons he distributes will carry the name of his company, thereby promoting his brand instead of the brand of Groupon or LivingSocial.
Tippr currently has 50 employees, up from five when it was launched early last year, and has aggressive plans for growth. With online giants like Amazon and Google eager to get into the business, will Tobias consider selling? He won’t say. What he does say is: “I was born in Seattle. I will die in Seattle. The company will stay here.”
Comments
Post new comment