Comments on: Framework For Thought: Aggregators http://blog.jwegener.com/2009/10/22/framework-for-thought-aggregators/ Jonathan Wegener's Technology/Marketing Blog Fri, 12 Feb 2010 22:34:04 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: aberzins http://blog.jwegener.com/2009/10/22/framework-for-thought-aggregators/comment-page-1/#comment-449 aberzins Wed, 25 Nov 2009 17:21:45 +0000 http://blog.jwegener.com/?p=548#comment-449 Jonathan,<br>Yes, we are an aggregator and our affiliates share in the fee per diner seated that we charge. The difference is we are an aggregator that does not compete with a restaurant's own brand, and we make the process of signing up and installing much easier. We still offer similar reservation management and table management features to restaurants and in that sense we are a software provider (Software as a service in our case, very scalable, think <a href="http://salesforce.com" rel="nofollow">salesforce.com</a>). Further, we can offer the leading restaurant guides and review sites such as <a href="http://urbanspoon.com" rel="nofollow">urbanspoon.com</a>, <a href="http://yelp.com" rel="nofollow">yelp.com</a> and others the ability to add the online reservation feature on their sites without stealing from their traffic either. A win-win on all sides we believe :) Jonathan,
Yes, we are an aggregator and our affiliates share in the fee per diner seated that we charge. The difference is we are an aggregator that does not compete with a restaurant's own brand, and we make the process of signing up and installing much easier. We still offer similar reservation management and table management features to restaurants and in that sense we are a software provider (Software as a service in our case, very scalable, think salesforce.com). Further, we can offer the leading restaurant guides and review sites such as urbanspoon.com, yelp.com and others the ability to add the online reservation feature on their sites without stealing from their traffic either. A win-win on all sides we believe :)

]]> By: Jonathan Wegener http://blog.jwegener.com/2009/10/22/framework-for-thought-aggregators/comment-page-1/#comment-448 Jonathan Wegener Wed, 25 Nov 2009 16:31:21 +0000 http://blog.jwegener.com/?p=548#comment-448 Hey Andris,<br>Thanks for the comments. I'd be curious to know whether you consider Livebookings to be an aggregator? Or simply a software solutions provider? If you partner with affiliate aggregators like bookatable and restauraunt-guide, do you pay them a per-customer referral fee? Have you also considered starting your own portal? <br><br>Jonathan Hey Andris,
Thanks for the comments. I'd be curious to know whether you consider Livebookings to be an aggregator? Or simply a software solutions provider? If you partner with affiliate aggregators like bookatable and restauraunt-guide, do you pay them a per-customer referral fee? Have you also considered starting your own portal?

Jonathan

]]> By: aberzins http://blog.jwegener.com/2009/10/22/framework-for-thought-aggregators/comment-page-1/#comment-447 aberzins Wed, 25 Nov 2009 06:41:14 +0000 http://blog.jwegener.com/?p=548#comment-447 Jonathan, your earlier post about OpenTable and this follow-on are fascinating topics. I represent Livebookings and our business model strongly disagrees with your assertion that aggregators always seem to get the upper hand and that constituents eventually lose. Unlike our main competitor, we do not use Livebookings as a consumer brand but instead focus on helping the restaurant build its own brand. We offer a reservation engine that goes directly on a restaurant's own home page (see <a href="http://www.acquavit.com" rel="nofollow">www.acquavit.com</a> as a great example) allowing the diner to book a table without leaving the site. In addition, we syndicate our restaurant inventory through many partner sites that are consumer focused (e.g. <a href="http://www.bookatable.com" rel="nofollow">www.bookatable.com</a> or <a href="http://www.restaurant-guide.com" rel="nofollow">www.restaurant-guide.com</a>) and therefore offer added exposure for the restaurant. We believe we offer the best of both worlds to the industry - aggregation without taking away from the restaurants own brand.<br><br>I would be interested in any further thoughts about this approach of solving the issue. We are just in the early stages in the US market right now, but the model is well proven in Europe.<br><br>Andris Jonathan, your earlier post about OpenTable and this follow-on are fascinating topics. I represent Livebookings and our business model strongly disagrees with your assertion that aggregators always seem to get the upper hand and that constituents eventually lose. Unlike our main competitor, we do not use Livebookings as a consumer brand but instead focus on helping the restaurant build its own brand. We offer a reservation engine that goes directly on a restaurant's own home page (see http://www.acquavit.com as a great example) allowing the diner to book a table without leaving the site. In addition, we syndicate our restaurant inventory through many partner sites that are consumer focused (e.g. http://www.bookatable.com or http://www.restaurant-guide.com) and therefore offer added exposure for the restaurant. We believe we offer the best of both worlds to the industry – aggregation without taking away from the restaurants own brand.

I would be interested in any further thoughts about this approach of solving the issue. We are just in the early stages in the US market right now, but the model is well proven in Europe.

Andris

]]> By: rdeichert http://blog.jwegener.com/2009/10/22/framework-for-thought-aggregators/comment-page-1/#comment-438 rdeichert Tue, 27 Oct 2009 01:17:22 +0000 http://blog.jwegener.com/?p=548#comment-438 I don't really need open table to book a reservation. I need to see menus, times, parking information, ingredients (I'm celiac and allergic to gluten). Some of the best restaurants aren't on those systems. <br><br>There is definitely value from an aggregator standpoint, but I feel most restaurants fall down on the basics. Sure there is scale in advertising, but differentiation is tough. I don't really need open table to book a reservation. I need to see menus, times, parking information, ingredients (I'm celiac and allergic to gluten). Some of the best restaurants aren't on those systems.

There is definitely value from an aggregator standpoint, but I feel most restaurants fall down on the basics. Sure there is scale in advertising, but differentiation is tough.

]]> By: Jonathan Wegener http://blog.jwegener.com/2009/10/22/framework-for-thought-aggregators/comment-page-1/#comment-437 Jonathan Wegener Mon, 26 Oct 2009 20:56:23 +0000 http://blog.jwegener.com/?p=548#comment-437 I don't think the constituent companies are lazy, there's simply economies of scale to being the aggregator rather than the constituent. Those economies of scale are partly marketing related and partially technology cost related.<br><br>No restaurant is going to go build their own seamlessweb online ordering system. It would take a ton of money and time and that's simply not their core competency. Seamless has the solution already. But more importantly, seamlessweb has the brand. It's easier to advertise an aggregator and establish a brand like seamlessweb than a restaurant advertising itself. This efficiency difference = Seamlessweb's value and profit. I don't think the constituent companies are lazy, there's simply economies of scale to being the aggregator rather than the constituent. Those economies of scale are partly marketing related and partially technology cost related.

No restaurant is going to go build their own seamlessweb online ordering system. It would take a ton of money and time and that's simply not their core competency. Seamless has the solution already. But more importantly, seamlessweb has the brand. It's easier to advertise an aggregator and establish a brand like seamlessweb than a restaurant advertising itself. This efficiency difference = Seamlessweb's value and profit.

]]> By: rdeichert http://blog.jwegener.com/2009/10/22/framework-for-thought-aggregators/comment-page-1/#comment-435 rdeichert Sat, 24 Oct 2009 18:56:16 +0000 http://blog.jwegener.com/?p=548#comment-435 Do you think that maybe the companies who are being aggregated are lazy? <br><br>Take opentable, most restaurants have poor websites. No real information, they don't do much to advertise specials. I never go directly to opentable to find a place to eat, instead I'm plodding around trying to find a website that's poorly built.<br><br>If you've got something superior you might be able to short circuit the aggregator. Do you think that maybe the companies who are being aggregated are lazy?

Take opentable, most restaurants have poor websites. No real information, they don't do much to advertise specials. I never go directly to opentable to find a place to eat, instead I'm plodding around trying to find a website that's poorly built.

If you've got something superior you might be able to short circuit the aggregator.

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