Vugo (company)

Vugo
Formerly called
 Viewswagen
Private
Industry Application software, Rideshare advertising
Founded Minneapolis, Minnesota (2015 (2015))
Founder
  • James Bellefeuille
  • Rob Flessner
  • Eugene Kurdzesau
Headquarters Minneapolis, Minnesota, United States
Area served
 United States
Key people
  • James Bellefeuille
  • Rob Flessner
  • Eugene Kurdzesau
Website www.govugo.com

Vugo is an application software company that develops an advertising platform to be used in rideshare vehicles for companies such as Uber, Lyft and Sidecar.[1] Headquartered in Minneapolis, Minnesota, the company is the first to develop in-car advertising for the rideshare marketplace.[2]

History

Vugo was founded in February 2015 by James Bellefeuille, Rob Flessner and Eugene Kurdzesau, all University of St. Thomas graduates.[3][4][5] The initial idea for the application came when co-founder James Bellefeuille worked as a driver for Uber in Chicago.[6] An owner of one of his favorite restaurants suggested that he carry menus in his car while ridesharing, Soon after adding the menu's to the pocket's to the backseat Bellefeuille noticed that passengers who previously asked for recommendations actually took action on his advice when presented with a menu.[7] The business is headquartered in Minneapolis, Minnesota and was originally named Viewswagen prior to its name change to Vugo.[8]

Vugo was beta tested in the Minneapolis-Minnesota area prior to it launch in May 2015.[9] By June of that year, Vugo had signed up more than 1,000 drivers.[6] Vugo was initially met with resistance from Uber who initially threatened to deactivate drivers partnered with Vugo, stating that rideshare advertising did not enhance a client's ride.[7] Bellefeuille responded in an interview saying, "We took a page from the Uber playbook...We’re going to do it anyway."[7] When questioned by a reporter, Uber responded that their support staff was incorrect and drivers are considered independent contractors and not employees of the company As such, Vigo was not against their drivers policy and drivers would not be deactivated for advertising with Vugo.[7][10][11] Vugo raised $250,000 in angel funding which it closed in June 2015. It announced the funding would be used for driver growth and product development.[4]

Vugo was also among the 70 semi-finalists of the 2015 Minnesota Cup, out of 1,300 initial competitors.[5] As of June 2015 Vugo claimed to have attracted almost 1,200 drivers to the platform.[6]

TripIntent Technology & Ad platform

Vugo's application displays advertisements on a tablet in real time, based on a passenger’s estimated intent. After the driver enters the passenger's destination, the application, taking into account route and time of day, uses an algorithm to display advertisements relevant to the passenger, reducing the possibility of irrelevant advertisements.[2][6][12] The application initially targeted towards rideshare drivers of Uber, Lyft and Sidecar, but it has since attracted attention from taxi companies.[1][6] Vugo claimed that drivers using its application could make more than $6,000 per year, with the advertising revenue from the application distributed by the company to the driver.[13][9] Vugo was characterized by a news portal as "Google AdWords on wheels".[14]

References

  1. 1 2 Johnson, Lauren (April 14, 2015). "This Startup Plans to Sell Advertising in Uber and Lyft Cars". Adweek.com. Retrieved July 16, 2015.
  2. 1 2 Campbell, Harry (March 31, 2015). "Video Ads Are Coming To The Back Of Your Uber". Forbes. Retrieved July 16, 2015.
  3. ↑ Jergler, Don (April 14, 2015). "Video Ads Next Big Thing in Ridesharing?". Insurance Journal. Retrieved July 16, 2015.
  4. 1 2 Grayson, Katharine (June 15, 2015). "Rideshare advertising startup Viewswagen raises funding, changes name". Minneapolis / St. Paul Business Journal. Retrieved July 16, 2015.
  5. 1 2 Keimig, Jon (June 10, 2015). "Six Tommie Businesses Advance in Minnesota Cup". University of Saint Thomas. Retrieved July 16, 2015.
  6. 1 2 3 4 5 McLean, Tessa (June 10, 2015). "This new startup promises Uber and Lyft drivers even more money". builtinaustin.com. Retrieved July 16, 2015.
  7. 1 2 3 4 Woodward, Curt (June 1, 2015). "Startups aim to put video ads in ride-sharing cars". Boston Globe. Retrieved July 16, 2015.
  8. ↑ "About us". Vugo. Retrieved July 17, 2015.
  9. 1 2 Sass, Erik (April 14, 2015). "Viewswagen Puts Ads in Uber, Lyft Cars". MediaPost.com. Retrieved July 16, 2015.
  10. ↑ O'Reilly, Lara (May 11, 2015). "Uber says it will 'discourage' its drivers from earning extra cash by placing ads in their cars". Business Insider. Retrieved July 16, 2015.
  11. ↑ Kieler , Ashlee (May 11, 2015). "Uber Discouraging Drivers From Using In-Car Advertising Services". Consumerist.com. Retrieved July 16, 2015.
  12. ↑ Parish, Wendy (April 14, 2015). "Startup Viewswagen hopes to bring targeted ads to Uber, Lyft". Marketingdive.com. Retrieved July 17, 2015.
  13. ↑ Blanc, Mark (April 16, 2015). "Uber Drivers Could Rake In $6,000 By Allowing Ads". Bidnessetc.com. Retrieved July 16, 2015.
  14. ↑ "Viewswagen: Consumers Can't Escape Digital Ads, Even in Uber, Lyft Rides". eCreditDaily.com. April 21, 2015. Retrieved July 16, 2015.
This article is issued from Wikipedia - version of the 10/10/2016. The text is available under the Creative Commons Attribution/Share Alike but additional terms may apply for the media files.