There is a new player in the location-based service market. GroupTabs is a startup that is being billed as a cross between Groupon and Foursquare. The idea is for a business to offer a deal if enough people check in to the location. It is currently being tested in New York City and the first deal just happened last week.
The next deal takes place Saturday.
The deal tips when ten check-ins are reached. The customer shows up to the bar and checks in using the mobile web based app. GroupTabs will only allow you to check in once you are at the venue. Users can also RSVP before hand so others can have an idea whether or not the deal has a good chance to take place. The idea is to try to get numerous people in the door at once with the hope that some of those people will be new customers.
As JP Manninen at VentureBeat writes, “The biggest problem for location-based services these days is that they are rewarding people who already frequent a certain venue.” GroupTabs aims to fix that problem by offering a business the opportunity to set a deal which a mass of people have to unlock.
This appears to be another positive step in the location-based service marketplace. I think that this has great potential and seem like it would of great use to restaurants and bars. Hopefully the testing in New York goes well enough and GroupTabs opens up in other cities soon.