MojoStreet, the location based services startup from Indyarocks co-founder Kalyan Manyam, has announced a tie-up with coffee chain, Cafe Coffee Day, under which users who check-into a CCD outlet through MojoStreet’s mobile app, will be offered a reward that can be redeemed at the outlet. The offers will be available at all of CCD’s 1174 outlets, across India, making it the first major nation-wide merchant tie-up for the company, which claims to have close to 200 merchant tie-ups in 1250 locations across the cities of Hyderabad, Bangalore, Noida, Gurgaon and Delhi.
Speaking with MediaNama, Manyam informed that offers will change from time to time, however, under the present offer, users get a free Green Apple Soda, on a bill of Rs 100 or above, when they check-in at a CCD outlet.
Awareness at merchant outlets? When asked what the company was doing to build awareness amongst the Cafe staff, he replied that the offer works like a promo code which is already integrated with CCD’s billing system- the user presents the code and the cashier keys it in, similar to paper based discount/offers. He said that the company had tested it for a month and found that 80% transactions went smooth, while the rest needed some effort on the side of the customer. But the offer would work even without the staff being aware of MojoStreet.
Is the CCD tie-up under a special arrangement or similar to other tie-ups? Manyam responded that it was under a different arrangement, since CCD was a big player. He however did not disclose the monetization model, and said that he’d rather not get into details, at this point in time.
What about other merchant tie-ups? Manyam said that the other merchant tie-ups were mainly at the city level, including local stores and brands. He did not reveal the names and said that the company will announce them, next week.
Active Users – MojoStreet has a registered user base of 30,000 users out of which, the company claims 40% are active, on a fortnightly basis. The largest number of active users are in Mumbai, where the company does not have a large number of merchant tie-ups, followed by Delhi, Hyderabad, Bangalore and Pune. It’s also seeing check-ins from tier-2 cities, which constitute around 40% of all check-ins.
Awareness/Promotions: According to Manyam, the company is promoting the service at locations where it has tie-ups. For the CCD tie-up, it will initially validate the response that the offer is getting, and then promote the service at outlets.
Monetization model: The service will go paid for all merchants, later this month and there will be no free subscriptions for merchants. Manyam said that the service monetizes through a model of subscription and lead generation for merchants and businesses, however, he refused to talk in detail about it and said that the company will offer more details about the same at a later time.
Differentiation & FourSquare? We asked Manyam why MojoStreet, which was focusing more on the gamification of LBS, was now getting into FourSquare territory with merchant tie-ups and deals, to which he replied that the differentiation comes in with relevance for the Indian market, which includes local level merchant tie-ups that will allow them to offer reward programs, while users will not just get virtual rewards but also real world ones. He said that the check-in concept has been used by all LBS players, though its been made popular in tech-circles and in the US by FourSquare, but MojoStreet’s focus is on India. It will offer the same level of focus in other markets when it expands, he added.
Mobile Platforms- In terms of downloads, there is a major growth in BlackBerry, followed by Android, Nokia and iPhone users. However, as per Manyam, Android and iOS users are more active.