J.P Morgan Chase and Co., which is a subsidiary of Chase Bank, has just recently announced its acquisition of Bloomspot, a startup that deals with local offers. Bloomspot is based in San Francisco. This acquisition marks the basis of forthcoming products that deal with offers.
J.P. Morgan Chase and Co. will now acquire Bloomspot’s team of hundred persons along with its technology. With Chase’s office at a very close distance from Bloomspot, the company’s team will have little difficulty in shifting to their new offices.
Bloomspot as a startup has a different take on the way offers must work, thus allowing its merchants to target its best customers. The company can improve its target offers with the use of credit card received from its consumers. Verification of the offer as to whether it has been redeemed and how much has been spent by the consumer is also possible now.
With over 2 million members and 5,00,000 merchants in the company at the time of acquisition, the company was a server of various large urban markets across the U.S . Apart from this, it was also in the process of developing a program for card linked offers.
Chase Offers’ President Jeff Kinders says that Bloomspot has for many years been running smaller offer though it was not really in the offers business. The company was however very receptive towards the bank’s offers. “In a lot of our focus group tests we found that consumers are not only excited to get these offers, but they also expect us to give them more relevant offers,” he tells us, as reported by Techcrunch.com.
“We think Jasper [Jasper Malcolmson, Bloomspot CEO] has put together a great team at Bloomspot, and we will integrate that team right away,” Kinder says. He adds that the team’s advantage also has to do with their past experiences working at other internet companies at scale. “They bring to us an understanding of how you do things at scale, and what that complexity is of operating at scale – that’s hard to find. And Chase is massive, so that’s a real asset in terms of fit.”