Toronto firm Mobile Fringe has partnered with Aramark Canada and the University of Toronto to launch a new daily deal service based on geo-fencing technology.
The service, dubbed Push A Deal, is an opt-in program that offers deals from participating vendors when customers are within a “geo-fence” within roughly one kilometre of that vendor. Consumers can sign up for the program at their Blackberry, iPhone or Android app store or online at the Push A Deal website and choose whether they prefer deal messages to be sent via e-mail or text message.
Mike Egan, business development manager for Push A Deal, said the mobile deal delivery system is more convenient for consumers than the e-mail-based messages sent by most of his company’s competitors.
“It’s no more daily deals clogging up your inbox,” he said.
Egan said familiarity with mobile devices and daily deal services is particularly strong among young consumers, leading Push A Deal to form its partnership with Aramark, a company that manages on-campus food services for many Canadian universities, and the University of Toronto. Push A Deal was introduced to UofT’s campus this week.
To make Push A Deal more attractive to retailers, Egan said the company charges 25% of the vendor’s discount, rather than the 50% claimed by competitors such as Groupon.
“We went around and asked retailers if they were using any of the daily deal sites and how they liked it, and the common answer for those who weren’t using them was that it costs too much money,” said Egan. “You’re splitting your margins in half and then you’re giving half your profit to the deal sites.
“With us, if a hamburger joint is offering one dollar off their hamburger, we’d make a quarter (per sale) on that deal.”
Egan said Push A Deal is in discussions with Aramark to introduce the service in more Canadian universities in the coming months.