Nobody likes standing in line. As I stood outside the nightclub on a bitterly cold Saturday evening, I was painfully aware of the questionable nature of the expertise that had led to our two-hour wait.
I wouldn’t readily reiterate the expertise. Fortunately, there’s a startup that offers a solution to this problem.
Backed by Y Combinator, SkipTracing allows individuals to discreetly pay for secure and efficient tracing services at bars and nightlife establishments. By leveraging the startup’s suite of cellular applications, patrons can seamlessly purchase priority access passes to partner venues through LineLeap’s innovative platform.
“As students, we witnessed a familiar challenge that many of our predecessors had faced,” Max Schauff, Co-Founder and Chief Marketing Officer at LineLeap, told TechCrunch. “Our go-to school bars surprisingly boasted lengthy queues.” The challenge lay in bars lacking a transparent mechanism for allowing patrons to bypass certain evenings without restriction. They consistently left a substantial amount of change on the desk as a result.
Investors may love the concept, but venture capitalists seem particularly enthusiastic about LineLeap’s direction. Y Combinator concluded its final month of funding by securing a $10 million round with notable investors, including Alex Pall of electronic music duo The Chainsmokers, alongside other participants. The spherical funding round that propelled LineLeap to a staggering valuation of $100 million, following a raise of $25 million.
The commute from school to university: a rite of passage.
While working at EnvoyNow, a startup specializing in on-demand meal delivery catering to students, Schauff had the opportunity to meet LineLeap’s co-founder, Patrick Skelly. Through shared social connections, Schauff and Skelly were introduced to Nick Becker, who would eventually join forces with them as the third co-founder of LineLeap.
While three university students – Schauff from the University of Wisconsin-Madison and Becker and Skelly from the University of Michigan – collaborated to develop a marketing strategy and build the website for LineLeap together.
“We launched into the frigid Wisconsin evening, the thermometer reading a chilly -5 degrees Fahrenheit on that February night in Madison.” “After a successful night, we capitalized on the momentum and dedicated the following summers to exploring new territories, embarking on road trips from one college town to another, seeking opportunities for growth.”
As one swift movement, the three friends sensed a LineLeap unfolding. To put aside their platform’s unique characteristics, the trio of co-founders decided to target school bars as their initial major customer segment.
The co-founders spent restless nights in seedy motels and slept fitfully in their vehicles as they crisscrossed the country, scrambling to secure gigs at various venues; whenever possible, they snuck into YMCA locker rooms for quick, invigorating showers. Within a short span of intense effort, the three individuals had refined their entrepreneurial approach and applied to the prestigious Y Combinator program.
They were accepted into the Summer 2019 cohort.
Flash ahead to 2024. Following a successful recovery from the pandemic’s impact, LineLeap has emerged stronger, establishing a foothold in NYC with a dedicated team of 40 full-time employees, bolstered by a network of part-time ambassadors. The mobile application boasts an impressive user base of over one million customers, accompanied by more than 400 school bars that have partnered with the platform, generating a projected revenue of over $30 million for the year.
“One of our most significant hurdles – securing partnerships with venue owners and getting their buy-in – has surprisingly become a major selling point for us, according to Schauff.” “After meticulous research and building strong industry connections over the past seven years, we’ve successfully cracked the code for identifying top-notch venues.”
Inequity and privateness considerations
Immediately, LineLeap offers significantly more than line-skipping capabilities. Customers can conveniently purchase live event tickets, cover charges, preorder drinks, and secure VIP table and bottle service using Venmo, PayPal, Apple Pay, or a linked credit card. Notifications are delivered directly to users via push alerts and email updates on specific events and promotions. Meanwhile, property owners gain access to intuitive dashboards providing real-time insights into transactions and actionable analytics.
Events range from DJ nights to soccer watch parties and stand-up comedy shows.
While there’s indeed a social aspect involved. When using LineLeap, customers can also add their contacts and view the locations where they’ve checked in if those contacts are also using the app. The Andaline Leap program incentivizes users to complete tasks by awarding points, redeemable for event entries.
LineLeap generates revenue by levying ticketing fees for premium event access. The corporation also levies fees for “unanticipated revenue” on venues – namely, income that wasn’t previously generated, such as gross sales from skip-the-line pass purchases.
“By partnering with LineLeap, venues can tap into a significant new revenue stream while also gaining the ability to directly engage and promote themselves to their most valuable audience.” “For event organizers, LineLeap offers a risk-free opportunity to collaborate and go live without any upfront costs or potential drawbacks, allowing for seamless partnerships that can be launched at a moment’s notice.”
There isn’t a clear drawback?
LineLeap is a recent innovation in technology that enables. As CNN’s Nathaniel Meyersohn terms it, this is a “thriving market of advantages” – advantages that arrive at the expense of diminished expertise for fewer fortunate clients, prompting concerns about service quality and fairness for those unwilling or unable to spend top dollar.
The uncertainty may deter certain event organizers from pursuing this strategy entirely? The reviewer’s sarcastic tone is evident in their scathing assessment: “If some bar has the audacity to charge for reservations, find another.”
Schauff assured me that there was no cause for concern.
“As the market evolves, we’ve seen a paradigm shift among traders: a surge in newcomers eager to invest in their skills and knowledge. At the vanguard of this revolution is LineLeap, always pushing the boundaries.” “Venuemakers keenly seek innovative, data-driven solutions to bolster their advertising and marketing strategies, ultimately driving revenue growth.”
It appears that data security may also be an issue.
I reached out to Schauff to inquire about LineLeap’s knowledge retention coverage, specifically regarding its duration and whether the company stores customer data. Additionally, I wanted to know if customers have the ability to delete their information at any point in time? When asked for clarification, he chose not to provide a personal response, instead pointing me towards the terms and conditions listed on the LineLeap website.
The lack of transparency regarding the agency’s knowledge retention timeframe is concerning. Additionally, they claim that LineLeap may be unable to fully delete or de-identify consumer data due to “technical” or “other operational reasons,” raising further questions about the company’s commitment to protecting user information.
Schauff reveals that the funding is earmarked for expanding LineLeap into additional nightlife and leisure sectors, including clubs, by adding novel in-app features and developing a comprehensive customer relationship management system for bars.
“Schauff notes that numerous companies have attempted to launch line-skipping businesses catering to bars and golf courses, but none have successfully scaled across multiple markets and sustained themselves beyond a few years.” “We take pride in partnering with our venues for long-term collaborations.”
