Drop (loyalty program)
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| Type of business | Private |
|---|---|
| Founded | August 25, 2015 |
| Headquarters | Toronto, Ontario |
| Created by | Derrick Fung, Darren Fung, Cameron Dearsley, Akhil Gupta |
| Industry | Loyalty program |
| URL | joindrop |
| Native client(s) on | iOS and Android |
Drop is a coalition customer loyalty program, in which users earn points using their linked debit or credit cards.[1] Users choose five rewards partners such as Sephora, Starbucks, Uber, and Whole Foods Market to earn points with.[2] The program started in the Canadian market during August 2015 and expanded into the American market during October 2017, after a six-month private beta.[3] The Drop Rewards program requires that users download a companion app on an iOS or Android device. According to Drop, the service was designed as a way for brands to earn exposure with millennials.[4]
As of November 2017, the company had 500,000 users.[5] This number has since risen to 1 million users as of January 2018.[6]
As of 2024, Drop points are not redeemable or usable for any purpose.
Funding
[edit]In August 2015, Drop raised a CA$1 million round of initial financing for launching the app.[7]
In October 2017, Drop raised a $5.5 million seed round of venture capital financing led by Sierra Ventures. As part of the deal, Mark Fernandes joined Drop's Board.[8]
In February 2018, the company announced that they had raised a US$21 million series A round, led by New Enterprise Associates.[9] Later that year Drop acquired customer analytics company Canopy Labs.[10]
In August 2019, the company announced their series B round which was a total of US$44 million, led by HOF Capital and Royal Bank of Canada (RBC) participated as a strategic investor. [11]
As of July 2023 the app has experienced a number of issues. One notable issue is a change in how the distribution of gift cards, which were once available to purchase at any time, is handled. Gift cards are now supposedly dropped every Thursday, and are "limited and capped at $25". Thousands of subscribers have reported that they have been unable to cash in their funds due to the app either taking a long time to load, or not loading at all, and then being told that the gift cards are “sold out”. Multiple users have even stated the gift cards aren't even dropped because they never seem to show up. The company has not made any comments on the matter.
On September 13, 2024, a lawsuit was filed against Drop Technologies Inc. in the US District Court for the central California region. [12]
References
[edit]- ^ Fischer, Alyssa (10 September 2017). "8 Personal Finance Apps You Need in Your Life". Popsugar. Retrieved 26 December 2017.
- ^ Chang, Lulu (11 October 2017). "Earn rewards as you spend money with the new Drop app". Digital Trends. Retrieved 25 December 2017.
- ^ Hartmans, Avery (4 December 2016). "This Canadian rewards app has 70,000 millennials using it — now, it's coming to the US". Business Insider. Retrieved 26 December 2017.
- ^ "The loyalty reward app getting attention from Millennials". Fox Business. 23 December 2016. Retrieved 25 December 2017.
- ^ "Many Merchants, One Mobile Rewards Program". Pymnts. 6 November 2017. Retrieved 26 December 2017.
- ^ "NEA leads $21m round for Drop, a rewards app for millennials". TechCrunch. 30 January 2018. Retrieved 13 February 2018.
- ^ Zubairi, Amira (16 April 2017). "Drop Pitches Millennial-Focused Rewards App on #thedistrupters". BetaKit. Retrieved 26 December 2017.
- ^ Cornick, Kate (11 October 2017). "Drop Rewards App Earns $5.5 Million, Expands to U.S. Market". Techvibes. Retrieved 26 December 2017.
- ^ Kolodny, Lora (30 January 2018). "Drop, a rewards app start-up, snags Airbnb's former head of engineering". CNBC. Retrieved 6 February 2018.
- ^ Galang, Jessica (November 15, 2018). "Drop Acquires Predictive Analytics Company Canopy Labs". Betakit. Retrieved August 26, 2021.
- ^ "44M Series B Drop in the Bucket Millennial Loyalty". 2019-08-22. Retrieved 2019-10-03.
- ^ "Shopping Rewards App Drop Sued Over Difficult-to-Redeem Points". Bloomberg Law.