This is really clever. Just couldn't exist without the changes/standardization in browser technology that have happened in the past 1-2 years. Congrats, and really excited about the potential.
238 karma · joined May 14, 2014
Paribus S15 | Acq. by Capital One
https://paribus.co
I can say that Paribus has been FAR more generous and collegiate with equity than early stage companies we know. To give a sense, many early employees could be in a position to fund their own seed/pre-seed rounds in their future businesses on the exit/compensation, if they so choose. The full team is staying on.
You might think we're crazy, but we fully believe (and have data to back up) that we're helping these stores far more than the costs.
But I'd challenge you on your assumption that this is a bad thing for stores and consumers.
It's a powerfully negative experience to buy something, and then find out within a few days (or hours) that it's selling for far less. It happens millions of times per day (www.forbes.com/sites/walterloeb/2014/11/20/amazons-pricing-strategy-makes-life-miserable-for-the-competition/), and most people don't find out. But the reality is that it's happening.
A customer could return it for free (and re-buy it -- many states require this by-law). Or a store could do good by the customer and give a price adjustment.
It turns out that when stores do good by customers when this happens, shoppers become far more loyal (and spend FAR more on average too, growing store top-line & often net bottom line). This is part of the secret of Amazon Prime.
While I can't claim that it is the right or only view, I fully believe that stores will benefit far more than the costs.
*Revised based on mquander's feedback
We are not selling data. Our model is to charge a portion of refunds that we actually get for you (that way we share same incentive as our users)
What do you do differently?
"For instance, total shopping time for households with an income between $100,000 and $150,000 (category 5) is 5 to 7 minutes greater (per day) than average shopping time by an individual in a household with income in the $0 to $24,999 bracket (category 1). After controlling for various individual characteristics (column I), this is robust to including both time and state (columns II and III), as well as labor force status dummy variables (column IV)."
In a highly-competitive marketplace, the stores that treat people right will win volume. Those who win volume take the market. So don't rip customers off (or be extremely quick to correct it when you're called out) and you'll gain customer loyalty and all the subsequent transactions.
The world doesn't owe you a deal, but then again, the customer doesn't owe you their next purchase. Life is long. As a store, your job is to keep earning customer trust so they come back.
On the second -- exactly. Paribus is designed to only pull in emails that appear to be from known merchants (Amazon, Bonobos, Best Buy, etc.).
Thanks for the kind words on the service. On your feedback, here's my take:
1. Stepping back, isn't it more absurd that people are, by default, charged more unless they spend significant time dealhunting? The claim is not that the disparity itself is unjust, just that it's time for this to come to an end.
2. For all of the biggest e-Commerce players (Amazon, Walmart, etc.), their biggest business lines (and ones where they're investing the most) are in the sales of basic necessities (food, household goods, etc.). So considering how dynamic pricing will impact people (esp. re: basic necessities) is important. I'm not sure why you're dismissing the key point so quickly -- if we care at all about helping bridge the income divide, we should care about helping the poorest get the most affordable prices.
In any case, I wrote the article because it really did shock us. Joe is a real person and a friend and we hope it does some good to show a small slice of what we're seeing.
We were part of the YC Summer 2015 Class. Link to our homepage here: https://paribus.co/
Was pretty surprising when we first saw it, but have seen since that lots of sites now serve different prices/coupons depending on the device you use to access.
Here's their full paper: http://www.ccs.neu.edu/home/cbw/pdf/imc151-hannak.pdf
From much more experience doing this than I ever imagine I'd have, having to enter each and every purchase manually, deal with alerts, and then manually go back and forth with customer service is painful. There's more work to do on our end (we're early stage). But extreme user simplicity is what we're going for.
Something that we often recommend is to create a separate email account for just your online purchases and promotions. That way you can have the benefits of automated price protection on your purchases, and fully separate your personal account. Happy to chat anytime on this too -- eric@paribus.co
Total class act, told your perspective with passion, and took the total right positioning for a new platform looking to side with freelancers (people so often taken advantage of in the startup eco-system).
Well done, and best of luck.
Eric w/ Paribus here. Slice does some similar things (track purchases via email, promise to send price drop alerts, etc.).
I wanted to love their product when I first used it, but found myself dissatisfied for a few reasons: 1. I personally have never actually received a price drop alert. (Could just be me, but many items that I've bought since being a member have dropped in price) 2. Just receiving a price drop alert leaves a lot of user pain. You still have to take the time to go back/forth with customer service for unclear benefit (not all price drop claims work), and for most price drops it simply isn't worth the hassle. 3. Most importantly, their actual revenue-driving business is fundamentally different: http://intelligence.slice.com/ Your data is the product that they sell to advertisers (and likely use for Rakuten, a major Asian eCommerce player and owner of Buy.com).
We designed our business to make money only when we make you money first. Its a small but important difference, but we think that aligning our interests fully with our users will make all the difference in making our product far more useful for consumers in the long run.
Also, while reading this anyone else here reminded of the totems (the spinning top, weighted dice, etc.) from the movie Inception? Small objects that remind you what's real and what's only a dream.
Breyer personally owns 3%, and is deemed to control Accel's 27%. So collectively, Breyer is considered to control 30% of voting shares.
Read correctly (not adjusting for any preferred or convertible notes that could be in the structure somewhere), the amount held by Breyer, USV, Accel, Tiger Global, and Index should add up to ~65%
Etsy's hipster cred is off the charts right now
Otherwise, all holders of common equity are considered to be on equal footing (pari passu)
So if it all goes south, these guys can hold debt (rather than common equity) and get first claim on the assets (ahead of common equity).
Ten years later, still no profile. This guy is stubborn.