Pelago, Inc.

Introducing Whrrl 3

This is a big day for me.

I founded Pelago in 2006 with the vision of helping people escape their social ruts, of bringing people together in a new and interesting way to inspire each other to do new things and to experience new social opportunities in the real world.

Since I founded the company, sadly, the problem has gotten worse. (Doh.)  The problem as we understood it in 2006 took the form of people tending to go out to the same places over and over again – the classic “what do you want to do?  I don’t know, what do you want to do?” problem.  But now, there’s a whole new way to be boring.  :-)  You can sit at your computer and spend countless hours throwing sheep at your friend’s Facebook wall, play Mafia Wars to level infinity and hoe someone else’s virtual garden – all substitutes for getting together with others in the real world.

Even more now than ever, we need to help people escape back into the real world, to add some spice to their lives.

With Whrrl 2, we started down the path by allowing people to inspire each other with everyday, real-world “stories.”  Today, we introduce, in Whrrl 3, what we believe is the full cure for Social Rut.

We had a dream that we could enable people to vote with their feet as to the places in the real world that are important to them; that we could bring together people whose feet take them to the same kinds of places and allow them to exchange ideas – all those little bits of knowledge people have about places in the real world; and that we could put those ideas at your fingertips with unprecedented relevancy.

This dream materialized.  These groups of people who share real-world patterns are called Societies.

Societies are powerful.  They enable the Whrrl community to curate the world and engage in a new kind of conversation that leads over and over again to discovery — discovery that is always relevant to the Society members, because it’s from other Foodies if you’re in a Foodie Society, other gamers if you’re in the Pinball Wizard Society, other wine lovers if you’re in one of our Wine Bar Societies, and so on.  You get into Societies by checking into the places you go, and believe me, it’s very obvious when you get into a Society.

We took it a step further.  Societies have levels.  People move up levels by getting “influence points.”  People get influence points by doing things that, well, influence other people to try something.  For example, if I check in somewhere, my friends can see where I am, so I might influence them to go to that place.  I get some points for that.  If I create a recommendation to go to Restaurant Zoe and get the (off-menu) Siren drink, I might influence them, so I get some points.  If a friend or fellow Society member clicks “want to” on my recommendation or check-in, I get even more points.  If they click “did it!” on my recommendation, I get even more points.  If they then re-recommend my rec, I get even more points.

Lucky me!  :-)

(I should mention that you can add photos to your recs in Whrrl 3.  You already know a picture is worth a thousand words, and now it will probably get you quite a few extra influence points, too!)

Societies, recs and influence points are wickedly cool (we think), but we didn’t stop there.  We created a way for real-world merchants to make offers to Whrrlers.  Not only can they make offers at individual places of business, but directly to Societies, as well.  In fact, the offers can made to members of Societies *by level*.  So, a gym owner might make an offer for all Gym Rats, but they can make a super special offer for just VIP- or Trendsetter-level Gym Rats.  For Whrrlers, that means that as you level up in Societies, you unlock more and more potent offers from merchants.  We have lots of offers in Whrrl today, and the number grows daily.

That’s also pretty darned cool, in our collective humble opinion.  But, again, we didn’t stop there.  As you level up in Societies, you also unlock special privileges, which are things you can do in Whrrl.  Like maybe you want to change the places in a Society.  Or maybe you want to create your own Societies.  There are many privileges to unlock, but I won’t spoil the fun by listing them all out here.

To make Whrrl 3 as fingertippy as possible, all of the recommendations and offers come together in one place in Whrrl 3:  your Ideas list.  Wherever you are, just click on the Ideas tab to see all the relevant recs and offers around you.  For every Idea, we keep track of everything that happens to it “in the wild.”  Who wants to do your Idea?  Who has done it?  Who has re-recommended it?  Not only do you get points as you help people discover, you can see exactly who the people are!  Oh, and you might see a few surprises on your Ideas list that go beyond offers and recs from others.  Let’s just say our algorithms are constantly trying to figure out cool and interesting things for you to do based on what others are doing and have done, so check your Ideas list often.

I have to say, it makes me tingly just writing all of this.  Whew!

So, in short, by participating in the Whrrl 3 community, you’re simultaneously helping your friends and others who share your interests, and you’re opening new experiences and pathways of exploration for yourself in your city.

We poured our heart and soul into Whrrl 3, and we feel like we’ve created something special and powerful for all of you, and something that will definitely enhance your life.  We look forward to being surprised by how you use it and to your as-always super valuable feedback.

May your life be spicy.

You can read the press release about the Whrrl 3 launch here.

Push notifications and merchant offers now live in iPhone app store

We’re always movin’ and a shakin’ here at Whrrl – proud to be constantly pushing out new updates and features that our users have been requesting.

All iPhone users should have a Whrrl update in the app store available for download now. This update includes two significant features that we’ve been working hard to include:

  1. Push notifications
  2. Merchant offers (deals available near or at the place you check in at. To read more about our merchant offer program, go here: http://faq.whrrl.com/merchants)

We’ve also fixed a few known bugs in this version too. To get the latest app, got to http://whrrl.com/getiphone.

As usual, we love to hear feedback from our users. Shake your iPhone to send in feedback, or email any thoughts, bugs, ideas, etc that you might have to feedback@whrrl.com.

Footstreaming with Whrrl v2.3

photo6With the latest Whrrl release for the iPhone (v2.3) that launched today, we’ve introduced a term that I’ve talked about since 2006:  ”footstream.”  It’s a term we coined to describe something a tad geeky, but which we believe will have profound positive consequences on the way people live their lives.

A footstream is simply a digital record of the places a person goes in the real world. To be clear, “place” is different from “location,” by which people usually mean a point on the planet specified by latitude and longitude.  “Place,” as we’re using the term, means a named entity, one that generally has an address in the real world, like the Starbucks at the corner of Spring and Third in Seattle.  We like latitudes and longitudes, but we’re fanatical about place, because it is so much more semantically rich than location.

My footstream, then, contains the specific restaurants, parks, bars, movie theaters, hotels, ferry terminals, grocery stores, clothing stores, cleaners, coffee shops, auto repair shops, amusement parks, museums, golf courses, gyms, book stores, campus buildings, department stores, and so on that I have visited.  In other words, it’s a collection of the places I care enough about to physically go there.  There is a lot of information in my footstream; in fact, it’s a powerful expression of my identity.

I gave a talk at the Where 2.0 conference earlier this year in which I attempted to explain why footstreams are so important. I drew an analogy to clickstreams on the Web, sharing several examples of how massive value has been created leveraging clickstreams, from Google’s relevancy ranking algorithms and cost-per-click advertising to Amazon.com’s and StumbleUpon’s personalization technologies.

Similarly, we believe we can unleash vast new value propositions built upon footstreams.  Our promise to you:  with footstreams, we can unlock discovery and social opportunities in the physical world of a kind never seen before.  Our mission with Whrrl is to increase the possibility of adventure and human connection in our real-world lives, and to us this means helping people to break out of their standard social patterns, e.g. going to the same five or six restaurants, and introducing them to remarkably relevant places to go and experiences to have that they otherwise would not have discovered.  Imagine having visibility into others’ footstreams — others who you care about, e.g. your friends or people who share some passion with you.  What places would pop up on your radar screen that you would never have thought to look for?  What kinds of new experiences within places would you discover?

What makes this difficult is that while clickstreams are intrinsic to the Web — by nature of the fact that the Web is already a fully digital experience, every click is already digitized — the places people go is as analog as it gets.  How can we capture the places people “click on” in the physical world?

photo4photo5If you haven’t heard the term “check in” (outside of the hotel context), it is the mechanism Whrrl uses for a person to say “I’m here” wherever they are (perhaps in a hotel!)  When you arrive at your favorite coffee house, you check in.  When you get to the office, you check in.  When you go out for happy hour, you check in.  The nice thing about checking in, beyond the fact of adding the place to your footstream, is that you completely control when you’re “on the grid” and who can see your current location.

Whrrl v2.3 – You, As Your Footstream

Up through v2.2, Whrrl has been primarily about “storytelling.”  This was a step toward our vision, though most of the Whrrl “iceberg” has remained below the surface of the water.  While capturing the place where a story happened was an extra in Whrrl v2.2, you’ll see that checking in takes a very central role in Whrrl v2.3, and you’ll find some cool new benefits for doing so (beyond having the place context associated with stories).

In Whrrl v2.3, you express yourself through the places you go and the people you spend time with in the real world.  You’ll see this come through loud and clear with this release, particularly on your Whrrl profile page.

Note:  Some of the new features I talk about below, like Whrrl Societies, tidbits about your social relationship with places and most of the website changes will turn on in the next couple of weeks.  Honestly, we thought Apple was going to take longer to approve our app, given it’s the holidays, but they did it in 6 days!  Rest assured that all of your check-ins will count toward Societies and be reflected in your footstream.

By checking in everywhere you go, you’ll establish patterns.  Are you a Starbucks person or do you eschew the big chains in favor of independent coffee houses?  Fast food or foodie?  Do you seek out brewpubs and microbreweries, or is PBR your beverage of choice?  Whatever your patterns, you’ll find yourself being accepted into Societies of the real world, an entirely new concept in Whrrl.

Every Society is a mini-community of people who share similar patterns.  Since footstreaming patterns are, literally, voting with your feet about the places that are important to you, therein lie expressions of passions.  Are you a diner person?  How about dive bars?  Value shopper or is quality the only thing that matters?  Which comic book stores are the real deal and which are posers?  At which places are you a “regular?”

We can’t wait to see where the Whrrl community takes Societies, and we have some very cool surprises in store that will make Societies super powerful and fun.

photo7You’ll also see ongoing feedback about your social relationship with places.  When you check in somewhere, you might learn which of your other friends have been there, discover that you’re the 2nd most frequent visitor or learn that someone you know is there right now.  The more of your friends who Whrrl, the more interesting and fun these little tidbits become.

Of course, as with previous Whrrl versions, you’ll be able to fully capture your experiences at places as photos and notes.  Also as before, you can check in with other people and collaborate on your story.  And you can share whatever you’re doing in Whrrl with your existing Facebook and Twitter networks.  We’ve made improvements to these areas of Whrrl, e.g. the ability to “like” slides (which enables real-time polling, too!) and share individual slides to Facebook and Twitter.  We hope you love these new capabilities!

We’re incredibly excited about this release, but know that there is much, much more to come:  we’re already hard at work planning the next release.  We’d love to hear your feedback, positive or otherwise, about Whrrl v2.3 (especially when all the features are turned on!  J).  Don’t hesitate to shake the phone for feedback or just send a note to feedback@whrrl.com.  (Just so you know, I read every single one of these.)

Jeff Holden is the CEO and Founder of Pelago, makers of Whrrl. You can read more about Jeff here, or find him on Whrrl here.

Average iPhone User 94 Times More Likely to Download an App

For those of you who saw the Business Week post by Peter Burrows on the 16th, you saw part of an analysis I sent his way that showed the power of the iPhone/iPod Touch ecosystem that Apple has built over the last six months. Yes, only six months ago — the App Store opened in July, 2008 and there have already been over 500MM app downloads!

Doing the Math

If you’re interested in the more detailed math that led me to the conclusion that an iPhone owner is 94 times as likely to download an app than a non-iPhone owner, here it is:

  • There are approximately 250MM non-iPhone owners in the U.S.
  • Analyst estimates are that Apple sold 4 million iPhones in the last quarter. If this is true, that means there are approximately 17MM (13MM from Apple’s fiscal Q408 results + 4MM per analyst estimates). These are worldwide numbers — probably 13MM of those are in the U.S.
  • 25% of non-iPhone smart phone owners have downloaded an app, and they download on average 2.5 apps per year. (M:Metrics, 1/31/08 survey of U.S. mobile subscribers, n=31,389). (Note that the 25% number is for smart phones; only 4% of feature phone owners download apps. In this analysis, we’re using the very conservative assumption that 25% of all non-iPhone owners have downloaded apps.)
  • That’s 156MM non-iPhone app downloads per year (0.25 * 250MM * 2.5) or about 13MM / month.
  • iPhone owners download 2.7MM apps / day (averaged across the lifetime of the App Store, but this is actually an accelerating curve) or 83MM apps per month. (Apple)
  • So the group of 17MM iPhone owners is downloading apps at 6.4x the rate (83MM / 13MM) of the group of 250MM non-iPhone owners.

So, another way of stating this is that the *average* iPhone owner is (83MM / 13MM) * (250MM / 17MM) = 94x more likely to download an app than a non-iPhone owner. That is, to have the same “effective reach” (number of people who actually download a developer’s app), a developer needs a channel to 17MM * 94 = 1.6 billion non-iPhones.

Note that this assumes that all the downloads are by iPhone owners as opposed to iPod Touch owners. To my knowledge, Apple hasn’t broken out how many iPod Touches (vs. Nanos, Shuffles, etc.) have been sold and/or how download behavior differs on iPod Touches vs. iPhones, but for kicks, let’s assume that there are 30MM iPod Touches out there (about 1/2 of Apple’s reported iPod sales during their fiscal Q4) with exactly the same download behavior as the average iPhone owner. In this case, the math would change to:

47MM iPhone/Touch owners are downloading apps at 6.4x the rate of the group of 250MM non-iPhone owners.
Or the average iPhone/Touch owner is (83MM / 13MM) * (250MM / 47MM) = 34 times more likely to download an app than a non-iPhone owner.

Choosing the iPhone as Our Primary Device

In the end, it doesn’t really matter, because while the download likelihood factor has decreased, the number of actual Apple devices a developer can get to has increased proportionally, so you still need 1.6 billion non-iPhones to get the same effective reach as the 47MM iPhones and iPod Touches. I find this very helpful context for deciding how to focus our limited resources at Pelago: at this point in time, it’s a no-brainer for us to focus on the iPhone as our primary device.

I think it’s also very interesting to think a bit about what’s going to happen in the emerging platform wars. Is the story told by the math above going to persist or are things going to change radically in the coming months. Google’s Android OS and associated marketplace looks very likely to be another big application platform player, but I strongly suspect there won’t be many of them. Why? The combination of developer <-> consumer network effects and early-mover advantage.

If you look back to the 80’s, when Apple and Microsoft were duking it out to be the PC platform of choice with consumers, there is some very instructive history. Both platforms were completely nascent, so neither had an network-effects-based advantage yet. But Apple chose to charge developers a fee to write software for its platform while Microsoft charged nothing. At that point, developers thought “well, I guess I’ll build my application for the Microsoft platform first, since I don’t have to risk any cash.” The only differentiating factor, really, was that cost-to-build point. So developers flocked to the Microsoft platform.

Consumers, of course, looked at the two platforms and asked “which one is going to have the applications I need?” Since there were vastly more developers building software for the Microsoft platform than the Apple platform, more consumers chose Microsoft than Apple. This, of course, tipped the scales further toward Microsoft, since now developers could see a significant reach difference between the two platforms (just like we see now with the iPhone vs. other ecosystems). The rest is history — Windows took 90+ percent of the PC market share and Apple had single-digit market share for many years (a situation that is just starting to change now).

Apple did not repeat this mistake with the iPhone. They created an ecosystem in which:

  • The target device is a powerful computer.
  • Developers can easily build and submit an application for distribution using virtually all the interesting APIs on the phone (location, accelerometer, 2D and 3D graphics, advanced sound, etc.)
  • Consumers can easily discover, download, pay for and use applications.
  • Developers risk no cash up front and can make money.

Apple Amps First-Mover Advantage as an App Platform

Apple is leveraging every ounce of their marketing machine to train consumers that the phone is only as good as the applications available for it and to show off the amazing selection of offerings in the App Store. As such, Apple has garnered over 15 thousand applications and over 5 thousand developers and consumers are ravenously downloading applications.

For someone to come along and assail this ecosystem means building up a selection and/or quality of apps that rivals the set that Apple has (and which is a moving target, of course) so that consumers will see the competing device as better from the “apps are the device” perspective. That’s a very tall order, and the more time that passes before a player enters the game, the less likely it is that he will be successful in getting to critical mass and a thriving developer <-> consumer ecosystem.

Read the full post in Business Week

Whrrl T-Shirts Spotted Around Town

There was an infamous “blue shirt” sighting at Hops & Chops at Linda’s Tavern a couple weeks ago.  Dave Schappell (founder of Teachstreet), Brian Westbrook (News Radio 750 KXL Tech Expert), and Bill Nordwall (co-founder of Foundry Interactive) rocked the exclusive duds together for many a photo-op.

I shipped the last 10 of these prints out, and we’re in the process of coming up with a new design.  I’ve already gotten pictures back from one happy recipient, and would love to see more!  Here are a few shots from Kevin’s Whrrl promo photo set on Flickr:

Kevin also wants everyone to know that he didn’t dye his hair blue for Whrrl, that’s a blue feather hat he’s wearing. Thanks for the pictures – enjoy the shirt!