Dutch startup BarDoggy ‘The Groupon of Bars’ quits business: Here’s what exactly happened

Dutch startup BarDoggy ‘The Groupon of Bars’ quits business: Here’s what exactly happened

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Getting a free beer is always a good idea? Also, if the bar next door offers 10 shots at the price of 5 is even more awesome! Well, this was the business model on which the Dutch startup BarDoggy was founded 5 years ago. The one-of-its-kind app, also known as ‘Groupon of bars,’ offers an extensive loyalty program for pubs and clubs.

Affiliated hospitality companies can attract users with the app with personalized offers, or reward loyal visitors without having to set up their own app or platform. In return, the users of BarDoggy benefit by getting free drinks.

BarDoggy pulls plug

However, recently the founder Tim de Kraker, took the online social platform, LinkedIn to announce that the company is finally quitting the business as “they were not able to develop a marginal revenue model.”

Kraker noted in the blog, “BarDoggy BV stops the activities because it has proved too difficult and too expensive to scale up the concept (internationally). Due to the lack of market demand, it was not possible to attach a good business model to the concept.”

He also informed that the platform will continue to exist for right now, but things might change in the future. “Customers can still continue to use the service for the time being. But perhaps the products will also be removed from the market early next year,” added Kraker.

BarDoggy: Users and Funding!

Reportedly, the Mijdrecht-based startup has raised €1 million so far from different investors including Print.com founder Marco Aarnink. Kraker added in the blog, “Together with a large group of investors, a lot of time and money was invested in this mission to help digitize the catering sector. Last year there was again a capital injection from a large market party, but in the end, this was not enough to continue.”

The BarDoggy app used to connect the bars in a certain area (circles) using GPS. Those app users searching for bars near them, would receive attractive offers. Reportedly, around 25,000 bars were already registered in the app database.

So now it is believed, while the company will seize the activities, they will try to sell the data and the software. “In the coming period the operating company will be dissolved and we will enter into discussions with interested parties for the software, the data and/or the platform,” informed Kraker.

While BarDoggy sounds like an interesting concept to us, it’s difficult to say why this unique app was not able to create enough market demand. Industry experts believe one of the factors could be lack of brand awareness. What do you think, could be the real reason according to you? Do share your opinions, in the comments section below.

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