Upside Business Model: How Does Upside Make Money?

Published on November 5th, 2024

Today’s dynamic business world puts revenue generation at the front of analyses based on a company’s performance and growth. Involving mutation of markets, as well as increasingly strong competition, companies are constantly in search of new opportunities and effective strategies to raise their revenue streams and ensure that they can keep up their posts in their respective fields. This often involves new markets, diversified product streams, and technology to optimize sales processes.

One such company that’s quite known for its distinctive pattern when it comes to revenues is Upside. This innovative organization has adopted a very unique method of generating revenues while at the same time elevating engagement with customers. In this comprehensive guide, we go a step further into how Upside makes money by getting to know the innovative strategies used and what makes it different from other companies in its sector. By knowing how Upside acts, companies will be able to obtain information that is helpful in revenue generation tactics that can also be applied to their operation.

What is an Upside App?

Let’s learn first what is Upside, before we dig into the ways that this company generates revenue. Since founded in 2016, Upside is a mobile application that brings an innovative way to discover local items at discounted prices. The application utilizes the latest technology to provide its users with tailor-made suggestions based on their interests and where they are. By working hand in hand with several merchants and other companies, Upside can deliver unique offers and deals that make it a top destination site for those clients seeking something special and not so expensive to do.

In September 2023 Upside’s mobile payment option generated a $20 million run rate in retailer sales and reached 35 million consumers through its mobile app and partner network in October 2024.

Also Check: How to Build a Payment App Like Zain Cash?

How Does Upside App Work?

The Upside is an application that plays the role of a marketplace between consumers and businesses. It works on a membership model by charging a sum every month or annually to get access to the application’s special offers and discounts. Using data analytics in conjunction with the prevailing machine learning algorithms, the application helps tailor the suggestions of new and exciting experiences happening in the area.

1. App Install:

The first is to download and install the Upside app from your phone. The application is available both for iOS and Android. Thus, the application will be accessible to the user regardless of what type of smartphone he has.

2. Link Payment Card:

After you download the application, it will ask you to link up a payment card for you to start trading. This would be the main source of payment for other purchases on the platform.

3. Find Gas Station Deals:

From this sign-up, users will be able to browse for the deals available within the app. One of the unique offerings from Upside is its gas station deals, where members can save up to 25 cents per gallon at participating gas stations.

4. Take the Offer

All that a user needs to do is select the offer at his or her preference and click “Claim.” The app will then generate a code users can use at the merchant’s place or a link for online purchases.

5. Check-In and Follow Instructions:

For in-store customers, the consumer is supposed to check into the merchant’s store and proceed as indicated by the app. The process may include scanning the code displayed or even clicking through a link to obtain the deal.

6. Cash Back Processing to be Credited:

When the purchase is completed, Upside notifies the buyer that the cashback is being processed. It is within 24-48 hours that it appears in the user’s account.

7. Cash Out the Profits:

When the cashback has been processed, users have the option to retain the profits in their Upside account or transfer it to their linked payment card. This is quite convenient and flexible because members can access and utilize their savings in the manner they prefer.

How Does Upside Make Money:

Upside makes money through partnerships with merchants as well as gas stations. The deals and discounts presented by these partners to the members of Upside create traffic and a sales volume for the business. In turn, Upside collects a percentage of the transaction amount as a commission. In addition to partnerships, the site also generates revenue through its membership program. Members can opt to pay for premium membership, with advantages that include higher cash-back rates and exclusive deals.

1. Commission Tied :

Upside partners with different merchants and gas stations to offer exclusive deals and discounts to its members. With every purchase made by a member through the app, Upside gets a percentage of the transaction as a commission.

2. Selling Aggregated Data :

Upside also collects information from its subscribers’ purchases such as buy history and consumer behaviors. This information is collected and sold to third parties in aggregate form for market research and advertising.

3. Selling White-label Solutions :

Upside sells a white-label solution to companies to develop their cash-back programs. This will allow businesses to incentivize their customers to make their purchases and then reward them. These can be done by the company offering a reward. The upside would be earned on that via licensing fees.

4. Tailored Offers :

Upside leverages the information it has about transactions to provide individual users with offers and suggestions. These targeted advertisements are likely to sell, hence generating revenue for Upside.

Also Read: How to Create an App Like LIDL Plus: Coupon App

Where to Get the Best Cashbacks with the Upside App

The Upside app is accepted through cash-back rewards in numerous merchants and stations. Among the popular options include;

1. Grocery Stores:

Upside has strategic partners with major grocery chains across the U.S., including Kroger, Safeway, and Publix, where it is giving a very nice cashback opportunity on everyday purchases. Also, using the Upside mobile app, customers can easily enter their preferred store, find some exclusive offers or promotions available, save a little money in doing their daily grocery, or try a product that would have been too expensive normally. This strategic partnership benefits not only the consumer but also in reviving relationships between Upside and such widely recognized retailers, hence making grocery shopping rewarding for all parties involved.

2. Gas Stations:

The Upside app also partners with gas stations around the country: Shell, BP, ExxonMobil, and many more. Through the app, users can receive cash back from buying fuel by simply scanning receipts. This doesn’t just help save money but also makes filling up much more convenient.

3. Restaurants

Upside restaurant deals allow users to earn cash back on their dining experiences. Using Upside allows its users to discover new restaurant options and even earn rewards while staying true to local businesses.

Unlock Savings: 6 Key Benefits of the Upside App

Among other benefits of getting cash back on a daily purchase, using the Upside offers many key benefits to its customers:

1. Cash Back on Daily Purchases:

With Upside, users earn cash back on any purchase they make at any of their favorite retailers, which can save money and transform an ordinary experience into shopping.

2. Offers and Promotions:

Easy accessibility to exclusive offers and promotions from Upside can make using this application very convenient. Through a few clicks, anyone can start earning some cash back on their purchases easily.

3. Choice in Redemption

The user, however, chooses how to receive his cash back earned-for example, as a direct deposit into the bank account or as a gift card to one of the partner retailers of Upside. This keeps the users rewarded in the best possible way available to them.

4. Continuing Cash Back Offers

Upside’s cashback offers are constantly updated to give the user new ways of earning cash day by day; therefore, the app remains attractive and exciting to its users, as users are sure to discover new deals and discounts.

5. Referral Bonus:

It goes without saying that in this practice, the users can earn further cash back by referring their friends and families to use the Upside application. This rewards the user further with more cash back while spreading the word about the benefits of the app.

6. Save Money on Gas :

What’s also cool about Upside is that it can give cash back on fuel. These users can upload gas receipts from participating gas stations and earn cash back; this is a great way to save a little bit of cash for this essential expense.

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3 Key Downsides of the Upside Cashback App

Although Upside has a lot of good things going for its users, there are still some weak points that users should consider before downloading the app.

1. Not Available Everywhere:

Upside is only accessible in a few locations and for a few gas stations which renders it less usable for some consumers. It can be a major disadvantage, especially for those who are not close to the partnered retailers or gas stations.

2. Prices Aren’t Always Accurate:

There are also complaints from users who get the wrong prices in the app. This makes it frustrating for some who use Upside to look for the best price and ultimately end up paying higher than the initial expectation.

3. Does Not Use Cash:

The cash-back offers are valid only if the customer has used his credit card or debit card. Then it would be just an app of less usage for cash customers. Then, this may inconvenience users and lose their scope to avail cashback opportunities.

Top 5 Upside Alternatives For Cashbacks

If Upside doesn’t work out or it just isn’t convenient for you, then here are five other cash-back apps or Upside alternatives you may consider:

How To Develop An App Like Upside?

So, if you are a businessman who wants to develop a cashback application like Upside, here are the first steps for you:

1. Validate App Idea

Validate an app idea fully before developing the app; that is, take some time and identify whether your app could be potentially successful. First and foremost, start by conducting a comprehensive market research process for that particular target audience on which you would focus and search to find out competitors that already exist in the market. Analyze their features, user reviews, and general performance to spot gaps in the market.

This information will guide your determination on whether or not there is a true demand for a cashback app, so you know where your value lies and how your offering is unique. You can speak to your would-be users through surveys or focus groups, and you can then take lessons learned from these users to design and function your app to set the stage for successful launching.

2. Find a Mobile App Development Team :

Once you have your vision of what you want in an app, it’s then time to scour the earth for a group of professional developers who will breathe life into your vision. You can hire in-house personnel or outsource the development of the app to a reputable mobile app development company. Whichever you have chosen to do, ensure that they have experience in developing similar apps and are on top of all of the up-to-date technologies and design trends.

3. Prototype and Design :

Your design should be the most crucial part of your application; it should be user-friendly and appealing, creating ease of navigation within the application for the users. It is always recommended to make a prototype of your application’s interface and features before jumping into development using wireframing tools or mockup software. This will help you visualize what your application will look and feel like, thus letting you make any last key changes before investing time and resources into development.

4. Create an MVP

A Minimum Viable Product is a minimum version of your app with the most basic features that you can release to a few selected users for testing and feedback. In doing so, you will be able to gather necessary feedback, check on issues or bugs, and perfect the app before its full version is launched. An MVP will also help validate an idea and attract potential investors or partners.

5. Testing & Deployment

Testing is to be done fully on the app, ensuring that all aspects deliver the best user experience. You might require a small sampling of the target audience for beta testing or depend on the tools themselves for auto-testing in detecting bugs and glitches in the app. Once the final version has smoothed out all wrinkles, off to deployment it goes.

Must Check: TaskRabbit Business Model: Ultimate Guide

How much does it cost to develop an app like Upside?

App development costs can vary dramatically depending on the features’ complexity, the platforms one is going to develop for, and the location of the team doing the development. The average cost might be anywhere from $50,000 to $500,000 or more. Make sure you define your budget and communicate it thoroughly with your team before starting the project.

How can iTechnolabs help you build an app Like Upside?

At iTechnolabs, we make customized mobile applications for all types of industries and purposes. Highly experienced developers, designers, and project managers all sit with the clients to capture their vision and create a high-quality app, which meets the specific needs of the clients. Here, we are extremely experienced in creating applications related to travel such as Upside Applications having features like booking of flights, online hotel reservations, car rentals, itineraries management, etc. We can even include high-end functionalities, such as real-time flight status updates and personalized recommendations based on the preferences of the users.

Custom Development: We create customized solutions tailored to your business objectives and satisfy the specific needs and preferences of your users for a more personalized experience that leads to engagement and satisfaction.

Experienced Team: Their team is composed of experienced developers, designers, and project managers with considerable experience and expertise in their field. Each member is assured of delivering quality results while maintaining close working contact with you for the successful delivery of your project.

Feature-rich applications: We have experience in building feature-rich applications, including application capabilities like flight booking, hotel reservation, car rental, and itinerary management. We are looking to design functionalities of utmost ease and convenience for users to plan any travel.

Advanced functionalities: In feature building, our team adds the feature of updating real-time flights and personal recommendations for the user. These features enhance the end-user experience while ensuring your application is not left behind by time and changes in the technology world.

User-Centric Design: We design user interface and user experience for smooth, intuitive, and engaging experience by your users. For us, understanding the behavior and preferences of a user means we can design truly aesthetically pleasing and easy-to-navigate applications.

Quality Assurance: We take total bug-testing protocols into the delivery of fully fledged reliable applications. Our quality assurance processes have various testing methods to identify and fix issues before they reach you so that your app works flawlessly.

Ongoing Support: Now that the app is launched, we will continue to offer ongoing maintenance and updates to keep it relevant and efficient. We will have support teams accessible to you should you have concerns or need enhancements for your app to meet the new demands of your users and technological innovations.

Conclusion:

Partner with us on your app development needs and let us help your vision become a reality. Using our feature-rich applications, advanced functionalities, user-centric design, quality assurance, and ongoing support, you can rest assured knowing that your app will stand out in the teeming crowded industry.

Must Read: Zelle Business Model: How Does Zelle Make Money?

Frequently Asked Questions!

What’s the Catch With the Upside App?

There is no catch with the Upside app. Our primary goal is that a user should have a very simple and pleasant experience while booking his or her journey free from any undisplayed fees or hidden costs at any time of trying to plan trips. We believe in transparency fully because, at the same time, we also reveal all charges made, thus ensuring there are no surprises when a booking is made. Besides, we stimulate demand for very competitive prices to book flights, hotels, and car rentals so that the user feels that he is getting the best deal for his trip. Therefore, on Upside, travelers can explore various destinations and be sure that they are doing the best with what they have.

How Does an Upside App Make Money?

Upside makes its money through a commission-based model. We partner with airline, hotel, and car rental companies to offer cheap deals to our users. With these travel partners, every time users book on Upside, we get a share of the full cost of the booking with these partners. This gives us the leeway to price competitively and serve better while earning revenues to sustain and enhance our platform constantly.

Is Upside App Legit?

Yes, Upside is completely legitimate. We are a registered and trusted company that adheres to all regulations and guidelines in the industry. Therefore, the most significant thing that defines our platform is the fact that it is secure, and we take user privacy very seriously. In addition, our team of travel experts ensures that all our bookings are reliable and provide the best value to our users.

How Do Free Apps Make Money?

Among such monetization methods for free applications are in-app purchase, advertising, and partnership. Users can usually upgrade to a premium version of the app or pay for the features or content available on the app through in-app purchase. Another very common way of generating income from free applications is through advertising, whereby companies pay to place their advertisements on the application. Others partner with the businesses and get a share for each consumer purchase or reservation that is made from the application. Ultimately, the success of a free application depends on how many users it can attract and what kind of useful services or features the users are willing to pay for. 

Does Upside Sell Your Data?

No, Upside does not sell its users’ data. We take all of our users’ privacy very seriously and strictly adhere to all necessary security protocol measures over all information that may be provided by the users. We use such data solely for the improvement of services, hence a proper user experience. We will never share nor sell any user data without their consent. In addition, Upside operates according to the guidelines of the General Data Protection Regulation in order to keep customers’ personal information safely and respecting international laws of privacy.