CityPockets Acquires DealBurner to Alert Users of Nearby Daily Deals

New York-based CityPockets is expanding into one of the biggest trends in daily deals by acquiring DealBurner, which sends a text message to users when a deal is located nearby.

CityPockets, which is only about a year old, is acquiring the company in an all-stock transaction. As part of the deal, DealBurner founder Jason Fertel will become director of engineering.

Both Groupon and LivingSocial are pushing aggressively to roll out offers that can be purchased and redeemed immediately, rather than having to wait a day. Currently, users must search for offers, rather than having deals pushed to them automatically, based on their location.

Today, CityPockets lets users manage their daily deals purchases in one place, whether they were bought from Groupon, LivingSocial or any of about 30 other providers. In April, it launched a marketplace that allows people to sell deals that they are unlikely to use.

Co-founder Cheryl Yeoh said that with the addition of DealBurner, the goal will be for users to be able to buy those unwanted vouchers on the go, and use them immediately for a restaurant or spa they might be visiting — whether it’s new or something someone else bought but won’t be using.

“I see it going to a more mobile solution, where you can buy and redeem instantly, rather than having to wait for a day. It’s the aggregation of past, present and instant,” she said.

Yeoh said DealBurner will aggregate the secondary marketplace with offers from both Groupon Now and LivingSocial Instant, which are the company’s respective marketplaces for same-day offers.

If you sign up for DealBurner and link your Foursquare and other check-in services to the app, it will send you a text message when one of these deals is available for your location, eliminating the need to have to manually open multiple applications and look for deals around you.

Foursquare and other services are already aggregating offers and showing them in their apps. Yeoh says CityPockets isn’t trying to compete with Foursquare, since it is trying to be a more comprehensive service.

Yeoh says CityPockets currently has 100,000 vouchers loaded into its system, with a cumulative value of about $5 million. She said that the average user has purchased 24 deals, of which nine are unused and still valid. That’s way above the four deals that Groupon reports as the average for its customer.

Yeoh launched the company with Jhony Fung at LaunchBox Digital’s Fall 2010 incubator program and has raised $750,000 from Great Oaks Venture Capital. With the addition of DealBurner’s Fertel, there will now be five employees.

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