Fly Or Die (Crunchies Edition): GroupMe, Uber, Square

Erick Schonfeld

Erick Schonfeld is a technology journalist and the executive producer of DEMO. He is also a partner at bMuse, a product incubator in New York City. Schonfeld is the former Editor in Chief of TechCrunch. At TechCrunch, he oversaw the editorial content of the site, helped to program the Disrupt conferences and CrunchUps, produced TCTV shows, and wrote daily... → Learn More

Sunday, January 23rd, 2011
Fly or Die Square

In this week’s episode of Fly or Die, the show where CrunchGear editor John Biggs and I attempt to predict the survival chances of hot new products, we did a special Crunchies edition. Each of the companies we feature—GroupMe, Uber, and Square—was nominated for a Crunchie award. At some point in the show, a founder of one of the three companies comes on to respond to our verdicts (we don’t know who it is until he shows up, which is part of the fun).

You can watch the entire 20-minutes show above, which starts with GroupMe, or skip directly to the segments about Uber or Square.

GroupMe is one of the new group texting apps that have popped up this year (see also Beluga and Fast Society). Group texting is nothing new, but the combination of smart phones in everybody’s pockets (which make it easier to set up ad hoc texting groups) and a reaction against the public nature of other messaging systems like Twitter or Facebook, is making group texting increasingly popular. GroupMe, which was born at a TechCrunch Disrupt Hackathon last year, does a decent job of helping you create groups on the fly from your phone’s address book. The app only sets up the group, and then all the messaging happens through SMS, which is fine, but I just wish that you could use the app as well to see all the messages and reply, and even to archive messages. SMS is ubiquitous (you don’t need a fancy iPhone or Android to use it), but it can also be expensive if you are not on the right plan.

One of the most fascinating companies we are tracking right now is Uber, which helps you get a car in San Francisco through an app on your iPhone. I was able to use it on during my trip, and once the app located me in cab-less downtown San Francisco, a car came within two minutes, and I could see where it was on a map as it was getting closer.

Uber has nailed the back-end dispatch problem with its fleet of participating drivers, but the app itself needs some work. I mistakenly entered my email when I was registering (which is not hard to do on an iPhone), and then couldn’t start over again because Uber associated my phone number, and thus my account, with the wrong email. This is a problem the company is aware of and fixing. Once I got that squared away, though, the app thought I was in Kansas for some reason and I had to manually move the pin over to San Francisco to get started. Getting the front-end right is key if Uber wants to capture more customers. The bigger challenge, however, remains the resistance of the entrenched taxi industry in different cities which will fight Uber tooth and nail as it tries it expand. I want Uber to fly, but I argue the other side in this episode.

Finally, Square is putting a cash register in everyone’s pocket by transforming iPhones into credit-card swipers. Small businesses and even individuals can now take credit card payments, and they get sophisticated analytics on the back-end. There are a lot of companies going after this space, including Intuit and other larger financial institutions. Can Square survive the onslaught by being more nimble?

Tell us what products you’d like to see covered in future episodes.

Company: GroupMe
Website: groupme.com
Launch Date: May 2010
Funding: $11.5M

GroupMe helps people stay connected and get together better with their friends. GroupMe’s two core offerings are: GroupMe, the group mobile messaging service, and Experiences, a service for finding, planning and purchasing group activities. GroupMe is based in New York and was founded by Jared Hecht and Steve Martocci in May 2010 at the TechCrunch Disrupt Hackathon. In August 2011, GroupMe was acquired by Skype, which was subsequently acquired by Microsoft in October 2011. For more information, please visit...

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Company: Uber
Website: uber.com
Launch Date: March 2009
Funding: $49.5M

Uber, a San Francisco based technology startup is innovating at the intersection of mobile technology, car transportation & logistics. The Uber experience captures the elite limo experiences and transforms it into an on demand service that fits an efficient and modern lifestyle.

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Company: Square
Website: squareup.com
Launch Date: February 2009
Funding: $341M

Square is making commerce easy for everyone. Starting with a free credit card reader for the iPhone, iPad, and Android devices, Square Reader allows anyone to accept credit cards anywhere, anytime, for a low transaction rate of 2.75 percent per swipe, with no hidden fees. Square Register serves as a full point-of-sale system for businesses to accept payments, manage items, and share menu and location information. Square Wallet, available in the US, is the most seamless way to pay,...

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