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GiftRocket (YC W11) Lets You Send Gifts That Can Be Redeemed At Any Location

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Re: GiftRocket (YC W11) Lets You Send Gifts That Can Be Redeemed At Any Location

#31

Post by bermanoid »

Everyone's ripping into this, and I'll be honest: I just wrote a long rant about what a terrible idea it is, but I thought about it some more and deleted it. And as a gift card, I still think I'm correct, this is not a great value proposition, primarily because you can't actually use the money (which comes in via PayPal) to buy stuff wherever you are. As someone that still remembers all too well being in college with $3 in my pocket and an overdrawn bank account, the greatest thing about gift cards was that they let you actually buy stuff immediately even if you have no money. The Paypal involvement bollockses that up, and that's not good; it also makes the fact that you're sent to a physical business kind of annoying, since you can really only use the money for online stuff unless you transfer it out of Paypal first.

But...

I had similar "who would ever use that?" thoughts about Foursquare when it launched, and had to revisit my feelings after seeing its success. It turns out that even if there's little value in the actual services provided, people really like the types of game mechanics that location-based apps make possible. This, IMO, is where GiftRocket should be focusing: they really should be pitching a game experience instead of a mere gift card.

I can easily imagine people setting up scavenger hunts, races, treasure maps, etc., if the site was set up to make that sort of thing easy and fun. You could even set up entire Amazing Race-style multi-leg races if it was done right. There are a lot of possibilities, and I could see the same sorts of people that get really into Foursquare getting really into this.

Don't get me wrong: I think this is a pivot that may need to be made, it's not where they are right now. As-is I don't see much emphasis of any game-mechanic in the marketing (and for that matter, the most likely fun applications, races and multi-leg treasure hunts, don't seem to be possible to construct), and the exclusive focus on sending people to businesses may not turn out to be the best approach unless they can start to sign on businesses to sweeten the deal (I'm sure they can line up things like 10% off if you redeem a gift card there or something like that). But even that's a bit of a shift, and it puts them more in the discount-seeking business than the gift card one.

Or I could just be wrong. This is a YC company, so they're sure as hell going to get enough eyeballs to battle-test the idea, and maybe the sheer novelty of it all will lure enough users to make this work even if they just stick with the current model.

Re: GiftRocket (YC W11) Lets You Send Gifts That Can Be Redeemed At Any Location

#32

Post by reason »

So... a few questions:

1. What happens if I forget about my GiftRocket? Yes, you could say the same about gift cards, but those are physical items I can keep in my wallet and discover months later. If I forget about a GiftRocket, what happens...? Do I get a notification that it's gone unused after a set period?

2. Will you notify me upon entering a restaurant that I have a GiftRocket, or must I remember that I have one?

3. Are you linking paypal transfers based on location? So I have to be at said restaurant for me to get my money that my friend gave me? I get it's not that much different from a gift card, but the actual card itself carries an inherent value. I will always have it, and it will always be worth a certain amount given the expiry date has not passed. It seems like my gift is locked somewhere in your cloud until I have proven to you that I am at a given location.

4. Do many people even use paypal to buy food when they're out?

5. If yes to 4, are the paypal transfers instant? It would seem kind of bizarre to eat at Bill's Burritos using my credit card, and then redeem my GiftRocket thinking to myself "It's ok, the cost of this meal will be compensated to me in a few days' time pending my GiftRocket transfer."

I'm sorry, I just don't see it. I feel like there's a lot being hidden from the user here. A gift card is something delivered to me by the the gifter -- there's no middle man putting a restriction on when you actually receive your gift card. And when I lose a gift card, it's money I've lost somewhere in my nightstand, not money I've left in my gift card broker's pocket.

Maybe I am wrong.

Re: GiftRocket (YC W11) Lets You Send Gifts That Can Be Redeemed At Any Location

#34

Post by old-gregg »

pekinb wrote: post #25
wallabe wrote: post #21

Earlier quoted context omitted.

Seems like you're arguing against gift cards in general. $100b worth of gift card spending suggests other people feel differently. Maybe you're not the target market? http://www.emarketer.com/Article.aspx?R=1005802

$X is worth $X in gift cards. I'm fine with that. I hate the idea of paying this company when they don't add any value.

"Don't add any value"? I thought the idea/value was to give people the option of sending gift cards for any business. That Mexican restaurant you keep referring in your examples may not even have a giftcard program.

Re: GiftRocket (YC W11) Lets You Send Gifts That Can Be Redeemed At Any Location

#35

Post by mahmoudimus »

wallabe wrote: post #16

How many billions do people spend on gift cards each year? Must be a multi-billion market...and that's constrained by the fact that with normal gift cards merchants must actually opt-in to start offering gift cards. With this it seems like they're able to expand the market by offering "gift cards" to places that haven't opted in or signed up. That's brilliant.

This is essentially the gist. Plus, it's super simple to send a GiftRocket. It's usually very painful to get a gift-card at stores, like, me physically being at the location.

This is much more convenient.

Re: GiftRocket (YC W11) Lets You Send Gifts That Can Be Redeemed At Any Location

#36

Post by kapilkale »

reason wrote: post #32

So... a few questions: 1. What happens if I forget about my GiftRocket? Yes, you could say the same about gift cards, but those are physical items I can keep in my wallet and discover months later. If I forget about a GiftRocket, what happens...? Do I get a notification that it's gone unused after a set period? 2. Will you notify me upon entering a restaurant that I have a GiftRocket, or must I remember that I have o…

Hi there

1. Yes, we remind you.

2. No. Would be possible with native apps, but we chose to have recipients click a browser link on their phone for ease of use so they wouldn't have to download an app / create an account. I agree though, this would be nice.

3a. Yes, we link to location.

3b. You can access your GiftRocket on your phone at any time by clicking the GiftRocket link, much like you'd look at a gift card in your wallet or purse.

4. No, not commonly used.

5. Yes, they're instant.

Hope that helps.

Re: GiftRocket (YC W11) Lets You Send Gifts That Can Be Redeemed At Any Location

#37

Post by newchimedes »

It's actually quite interesting. I didn't know about these guys, but was thinking through this idea a few weeks ago. My version was called "Money Drop". I concluded that technology was cool,but I couldn't think of a compelling reason to use this application, except for 2 cases. 1) Drug dealers and 2) Kidnappers.

Say I just kidnapped your dog and I'm holding it ransom. I email you and tell you to MoneyDrop $100 at the local mall. Once I see the money has been "dropped" I go there and collect it with my smart phone app. Why would this be useful? It's harder to figure out who picked it up since you are in a public space and are just clicking a "pickup" button. Win-win!

Re: GiftRocket (YC W11) Lets You Send Gifts That Can Be Redeemed At Any Location

#38

Post by pekinb »

old-gregg wrote: post #34
pekinb wrote: post #25

Earlier quoted context omitted.

$X is worth $X in gift cards. I'm fine with that. I hate the idea of paying this company when they don't add any value.

"Don't add any value"? I thought the idea/value was to give people the option of sending gift cards for any business. That Mexican restaurant you keep referring in your examples may not even have a giftcard program.

It wasn't a gift card in my examples. It was cash. Or an American Express giftcard. Just like you'd be getting with GiftRocket, except GiftRocket wants a cut.

Re: GiftRocket (YC W11) Lets You Send Gifts That Can Be Redeemed At Any Location

#39

Post by DanielStraight »

wallabe wrote: post #10
klochner wrote: post #8

Earlier quoted context omitted.

It's not any more ridiculous than facebook virtual gifts that cost money: "So I can pay facebook $1 to send my friend a virtual beer that he can't drink?" Both are arguably ridiculous to any (hyper)rational person, but people are not rational.

It's no more ridiculous than a normal gift card: "Wait, you paid $25 so I can have $25 that can only be spent in one location?" That's a cost right there...if flexibility had a price I'd bet it'd be >5%.

No more ridiculous than a normal gift for that matter. Giving a purchased gift at all is trading $25 for an inflexible $25.

Re: GiftRocket (YC W11) Lets You Send Gifts That Can Be Redeemed At Any Location

#40

Post by pg »

pekinb wrote: post #18
pg wrote: post #5

Earlier quoted context omitted.

You always have to pay to send someone money. And a giftcard for a store or restaurant also requires your friend to go there.

Me: "Hey dude, there's this great new Mexican place on your block. Here's $30. Enjoy." = free Me: "Hey dude, check out this website that's going to tell you about this great new Mexican place on your block. Here's $30. Enjoy." = not free

Sure, but in that situation, as you say

http://news.ycombinator.com/item?id=2351451

you wouldn't give a giftcard either. Giftrocket is only meant as a replacement for giftcards, not as a replacement for cash.

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