Ibotta is a simple app that enables you to save and earn cash by doing tasks like uploading purchase receipts, watching videos, purchasing things online and much more. But what’s in it for them, and how do they make money?
Ibotta generates income majorly through affiliate commission. In addition, they make money by offering brand marketing and product research services to companies.
Now let’s see everything in detail.
So what is an affiliate program or affiliate commission?
An affiliate program is a system where a company offers a commission to affiliates for referring people to their products and services.
Here Ibotta acts as an affiliate and makes money by referring people to vendor’s products and services.
So every time you purchase through the Ibotta app, they earn a commission at no additional cost to you.
Example, if a product is sold for $50, depending on the agreement made Ibotta can take 10% of the money as their earnings.
A major reason why Ibotta provides cashback service is because of the commission they get for every sale.
Yes, it is as simple as that.
If a brand wants to advertise their product on Ibotta, they pay a certain sum of money to Ibotta to help boost their product to the general public.
A majority of the videos shown on ibotta are about different brands, products, and services.
The videos are crafted in such a way that they will attract the attention of people and eventually create brand awareness.
Users are also urged to watch these in exchange of rewards.
And most people do not mind as long as they will receive their rewards at the end of the video.
So these are the two direct ways that Ibotta uses to make money.
No, they do not sell the buyer's personal information to a third party without the consent of the person.
Ibotta values their relationship with the buyers on their platform and make them their number one priority.
The security and privacy of a buyer's information are handled with proper care and precision.
It is against their policy to share or sell the personally identifiable information of people on their platform. This information includes; name, e-mail address, phone number, and so on.
But you need to know that Ibotta shares de-identified information of people on their app with third parties to personalize the app for savers and buyers on their app.
You can unsubscribe or opt-out of this sharing of information. All you need to do is visit the preference center in the app or website and select the button that says “Do Not Sell My Personal Information.”
Ibotta right from the start has always offered people on their app the right to avoid sharing of de-identified information with third parties.
In the Preference Center (can be found on both the app and the website), a button titled “Limit Ad Tracking” is available there which when selected will stop Ibotta from sharing your de-identified information with any third party.
There is also a new “Do Not Sell My Personal Information” button, this does the same work as the "Limit Ad Tracking" button. The only difference between them is the name. Due to the new data privacy laws all over the United States, the name was changed.
Ibotta was founded in 2012 by Bryan Leach, who is the current CEO. It initially started with groceries but now has over 1,500 consumer brands. Consumers have been saved from over $600 million in cash back.
Ibotta had obtained over $73 million in funding as of 2016. Ibotta does not have specific net worth and has not disclosed any recently.
Still, in 2019, a report was made saying that people downloaded the Ibotta app over 30 million times, and users have received over $535 million as money from rewards.
Ibotta once announced that one of their series, series D raised over $1 billion valuations and became one of the private companies to reach a ten-digit valuation.
The company did not disclose the series D actual value. Koch Disruptive Technologies (KDT), which is a subsidiary of the Koch Industries, led this round for Ibotta.
The most recent round of funding comes through Ibotta’s new payments service, which was released earlier this year. The service is called Pay with Ibotta; it allows its customers to finalize their entire purchase on the app.
When buyers use Pay with Ibotta, they can put in the total purchase and scan a barcode in the app for a fast, rewarded checkout.
This is different from the traditional way Ibotta uses to reward where people redeem their receipts. Ibotta had to partner with different retailers like Chipotle, Old Navy, REI, and so on, to improve the service and generate more income.
The company stated that over $200 million in revenue is anticipated to be attained before the end of the year.