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Loopt
Loopt
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Loopt, Inc. was an American company based in Mountain View, California, which provided a service for smartphone users to share their location selectively with other people. The service supported all the major mobile operating systems. Loopt's services had more than five million registered users and partnerships with every major U.S. mobile phone carrier [citation needed]. Their applications offered a variety of privacy controls. In addition to its core features, users also had the ability to integrate Loopt with other social networks, including Facebook and Twitter.

Key Information

The company was founded in 2005 and received initial funding from Y Combinator,[2] and completed Series A and B financing led by Sequoia Capital[3] and New Enterprise Associates.[4] The company's board members included TiVo-founder Mike Ramsay and Greg McAdoo of Sequoia Capital.[5] In March 2012 Loopt agreed to be acquired[6] by Green Dot Corporation for $43.4 million in cash, with $9.8 million of that to be set aside for employee retention.[7]

History

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Initially called Radiate,[1] Loopt began with funding from Y Combinator. That summer, Stanford sophomores Sam Altman and Nick Sivo worked to build the first prototype of Loopt. They were later joined by Alok Deshpande as well as two of Sam's childhood friends, Rick & Tom Pernikoff.[2]

Loopt received US$5 million in Series A funding from Sequoia Capital and New Enterprise Associates and struck a deal to launch the service on Boost Mobile devices in September 2006. Boost Mobile featured Loopt in a series of commercials that are most known for the "Where you at?" tag line.[8]

In August 2007, Loopt expanded the service to select Sprint phones, and in June 2008, to Verizon. Loopt announced support for most GPS-enabled Blackberries on June 13, 2008.[9] Loopt received US$8.25 million in Series B funding in July 2007.

In February 2008, Loopt and CBS partnered to deliver location-based advertising.[10] Seven months later, Loopt released an opt-in feature in Loopt's iPhone application, called Loopt Mix, which uses location-based services to enable iPhone users to find and meet new people nearby.

At Apple's Worldwide Developers Conference in June 2008, Altman presented the Loopt application for the iPhone. Loopt for the iPhone became available to US customers of the Apple iTunes App Store on July 11, 2008.

In the summer of 2008, Loopt sponsored Black20's The Middle Show with host Dave Price.

In October 2008, Loopt was sued by Earthcomber for patent infringement.[11] The case was dropped by Earthcomber in March 2009.[12]

In October 2009, Loopt acquired Y Combinator-backed startup GraffitiGeo for an undisclosed sum.[13]

In March 2010, Loopt launched an upgraded version of its iPhone app,[14] incorporating place and event information to its Pulse database, bringing in content from ZVents, Metromix, and SonicLiving. These are added to existing content partnerships with Citysearch, Zagat, and Bing.

In March 2010, Loopt launched a product called Loopt Pulse, exclusively designed for the iPad.[15]

In April 2010, Loopt launched an upgraded version of its BlackBerry app.[16] The upgraded version includes the same places and events upgrade formerly launched in March 2010 for iPhone users.

August 2010 saw Steve Boom taking over as president of the company.

In December 2010, Loopt launched Loopt version 4.0, which featured a completely updated design.

In March 2012, after raising more than $30 million in venture capital, Loopt announced it had agreed to be acquired by Green Dot Corporation for US$43.4 million in a deal that was most likely orchestrated as a marriage of convenience by joint investor Sequoia Capital.[17][6]

SMS invitation issues

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Users of Loopt must register their mobile phone number, full name, and date of birth. Loopt's privacy notice states that users can control who receives geo-location information via privacy settings.

When Loopt released its native iPhone application on July 10, 2008, the software quickly gained notoriety for sending Short Message Service (SMS) invites to users' address books, seemingly without the user's knowledge; additionally, the SMS service failed to respond to the industry-required STOP message.[18]

On July 14, 2008, Loopt posted to its blog that the mass invites could be attributed to a confusing user interface, and they were working on an improved invitation flow.[19] Respect for STOP was announced July 15, 2008,[20] and on July 17, 2008, Loopt released an updated version which addressed the issues with the confusing user interface.[21]

See also

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Notes

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References

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Revisions and contributorsEdit on WikipediaRead on Wikipedia
from Grokipedia
Loopt was a pioneering American mobile application and that enabled users to share their real-time locations with friends via interactive maps, send location-tagged messages and , and discover nearby places, events, and deals. Launched initially for carrier-specific mobile phones in 2006, it expanded to support platforms like and Android, allowing background location updates and cross-network sharing among users on major U.S. carriers such as , Verizon, Sprint, , Boost, and MetroPCS. The company was founded in 2005 in , by , then a 19-year-old dropout, along with co-founders Nick Sivo and Alok Deshpande, with early backing from as part of its Summer 2005 batch. Originally conceived as a way to locate friends on campus, Loopt quickly evolved into a broader location-based platform, raising approximately $30 million in venture funding across multiple rounds from investors including and . In March 2012, after operating for seven years and amassing a user base that peaked at over 5 million registered users, Loopt was acquired by Green Dot Corporation—a Pasadena-based provider of prepaid debit cards and mobile banking—for $43.4 million in cash. The acquisition aimed to leverage Loopt's mobile expertise for Green Dot's financial services, leading to the shutdown of Loopt's core social features later that year and the integration of its technology into payment applications.

Company Overview

Description and Purpose

Loopt was a pioneering location-based that enabled users to share their real-time locations with selected friends through mobile devices. Launched in , it functioned primarily as a mobile application and SMS-based platform, allowing individuals to track nearby friends and receive alerts when they were in proximity to one another. The core purpose of Loopt was to enhance social connections by leveraging GPS and cellular data to facilitate spontaneous meetups and interactions based on physical . It alerted users to friends within a specified and provided recommendations for local venues, events, and deals, turning everyday mobility into opportunities for social discovery. This focus on real-time, proximity-driven networking distinguished Loopt as an early innovator in geosocial services. Targeted mainly at young adults and college students, Loopt catered to a demographic eager for seamless, location-aware ways to maintain and expand social circles. Initially emphasizing SMS compatibility for feature phones on networks like Boost Mobile—a youth-oriented provider—it later expanded to smartphone apps, broadening accessibility while preserving its emphasis on simple, on-the-go sharing.

Founders and Leadership

Loopt was co-founded in 2005 by Sam Altman, Nick Sivo, and Alok Deshpande, who together shaped the company's early vision for location-based mobile services. The company was initially named Radiate. Sam Altman, a Stanford University computer science student, dropped out at age 19 to lead the venture, motivated by his keen interest in emerging mobile technologies and the potential for real-time location sharing to enhance social connections. As CEO, Altman drove Loopt's initial product development and secured substantial early funding, including from Y Combinator's inaugural batch, leveraging his entrepreneurial drive to position the company as a pioneer in the nascent smartphone ecosystem. Nick Sivo, Altman's Stanford classmate, served as co-founder and , playing a pivotal role in building the technical foundation of Loopt's mobile application, including its core location-tracking features. Alok Deshpande, the third co-founder, contributed to the startup's operational and strategic groundwork during its formative years. Brian Knapp joined Loopt as in 2008, managing daily business operations and advocating for user privacy in regulatory contexts, which helped guide the company's compliance and growth strategies amid rising concerns over location data. His tenure supported Loopt's adaptation to the competitive mobile social landscape, emphasizing secure and user-centric features. The board of directors featured influential investors, including Greg McAdoo of , who led a key funding round and provided strategic oversight that influenced Loopt's direction toward scalable mobile innovations and partnerships. McAdoo's involvement, alongside other backers like , ensured alignment with broader industry trends in social and location technologies.

History

Founding and Early Development

Loopt was conceived by while he was a student at , driven by the potential of GPS-enabled mobile phones to allow users to track and connect with friends' locations in real time. This vision emerged amid the early adoption of location-based services, with Altman recognizing the "cool" opportunity to build a social networking tool around emerging mobile technology. The company was officially incorporated as Loopt, Inc. in 2005 in Mountain View, California, co-founded by Altman, fellow Stanford students Nick Sivo and Alok Deshpande. Backed by initial funding from Y Combinator's inaugural summer batch, the team focused on developing a service that leveraged SMS and rudimentary GPS capabilities available on select devices. Loopt launched its beta version in September 2006 as an SMS-based location-sharing service, initially available on Boost Mobile devices, allowing users to share their positions and find nearby friends. The service quickly gained traction, reaching 100,000 users by early 2007, primarily through partnerships with prepaid carriers targeting younger demographics. During this period, the encountered substantial hurdles in building the platform, including the nascent state of GPS integration in mobile phones, which suffered from inconsistent accuracy—often limited to 50-100 meters outdoors—and significant battery drain that restricted continuous use. Securing carrier partnerships proved equally challenging; Altman spent months negotiating access to location data, initially tapping into 911 emergency services infrastructure since widespread commercial GPS APIs were unavailable, a process that later extended to major operators like Verizon in 2008. These obstacles required innovative workarounds, such as hybrid positioning techniques combining GPS with cell tower , to deliver reliable functionality on limited hardware.

Growth and Acquisitions

Following its early launches on mobile carriers, Loopt experienced significant user base expansion from 2009 to 2011, reaching more than 5 million users by April 2011. This growth was driven by the app's availability on major platforms, including the Android Market in December 2008 and the iPhone App Store in October 2009, which broadened accessibility beyond carrier-specific downloads. Additionally, integrations with social networks like in late 2010 enabled users to connect check-ins and location data across platforms, further boosting adoption through viral sharing and friend recommendations. In October 2009, Loopt acquired Y Combinator-backed startup GraffitiGeo for an undisclosed sum, enhancing its offerings with location-based social features. GraffitiGeo's technology allowed users to leave virtual graffiti at real-world locations, introducing gamified elements such as digital tagging and discovery, alongside user-generated reviews tied to specific spots. This acquisition filled gaps in Loopt's portfolio by adding interactive, community-driven content creation, helping to differentiate the app in a crowded location services market. Loopt strengthened its market position through key partnerships with major U.S. carriers, including pre-installation deals with Sprint, Verizon, and , which provided instant distribution to millions of devices. These collaborations, building on an initial Sprint agreement in , ensured Loopt's app came bundled on new phones, accelerating user onboarding without relying solely on downloads. To monetize location data, Loopt also partnered with services like Mobile Spinach in early for targeted local advertising and offers, delivering proximity-based discounts to users near participating businesses. Facing intensifying competition from apps like Foursquare, which popularized gamified s, Loopt pivoted in 2010 from primarily location sharing to emphasizing deals and personalized recommendations. The launch of Loopt Star in May 2010 introduced simplified functionality alongside real-time specials from nearby merchants, aiming to drive engagement through rewards and commerce integration rather than pure social tracking. This strategic shift positioned Loopt as a hybrid service for discovery and savings, adapting to user preferences for practical value amid the location-based social boom. By early 2012, however, daily active users had declined to around 500.

Acquisition and Shutdown

In March 2012, Green Dot Corporation announced its agreement to acquire Loopt for $43.4 million in cash, with approximately $9.8 million allocated as retention incentives for key employees. The transaction, aimed at bolstering Green Dot's mobile capabilities, closed on April 4, 2012, after regulatory approvals. Green Dot sought to leverage Loopt's expertise in location-based services to enhance its prepaid debit card ecosystem, particularly by integrating real-time location data for improved customer acquisition, retention, and targeted offers in mobile payments and rewards programs. This move positioned Green Dot to develop innovative features like location-triggered transactions and personalized banking experiences, utilizing Loopt's patents in mobile marketing. The standalone Loopt consumer app was discontinued in 2012, as Green Dot fully absorbed its underlying technology into proprietary services such as the GoBank mobile account launched in 2013. Loopt's Mountain View team was retained initially to support this integration, with retention bonuses facilitating transitions; notably, CEO departed in 2014 to assume the presidency of .

Products and Features

Core Functionality

Loopt's core functionality centered on location sharing, enabling users to broadcast their real-time positions to selected friends via a mobile interface, with alerts triggered when contacts were detected within proximity, such as up to 25 miles away. This feature relied on GPS and cellular data to display friends' locations as pins on an interactive , facilitating spontaneous connections without manual updates. was managed through opt-in controls, allowing users to toggle sharing on or off globally or per individual friend, ensuring location data was only visible to approved contacts. The service incorporated capabilities, where users could manually post their current location along with photos, comments, or instant messages, creating a feed of activities visible to their network, akin to early streams. These posts not only documented personal experiences but also encouraged interactions through likes, replies, and shares within the app's social layer. Recommendations formed another pillar, providing personalized suggestions for nearby events, stores, or deals derived from a user's location history, time of day, and aggregated friend data. For instance, the app could highlight popular events attended by multiple contacts or tailored discounts at local venues, integrating partnerships like for curated lists of "coolest places" in the vicinity. This functionality aimed to enhance discovery by blending user patterns with real-time environmental context. Social networking elements included building friend lists from phone contacts or imported networks, sending invites to join via or app prompts, and viewing group locations on a shared map to coordinate meetups efficiently. Users could select specific groups for broadcasts, promoting organized gatherings like group outings based on collective proximity. These tools fostered a by simplifying the of real-world interactions through location-aware connectivity.

Mobile App Evolution

Loopt began as an -based location-sharing service in 2006, enabling users to exchange real-time position updates with friends through text messages constrained to the standard 160-character limit of protocols. This early iteration relied on cell tower for determination, providing approximate positioning based on signals from nearby cellular towers rather than precise coordinates. Users could opt in to share their whereabouts selectively, fostering spontaneous social interactions but limited by the rudimentary accuracy and text-only format of the platform. The transition to native mobile applications marked a significant advancement, beginning with the app launch in July 2008, which leveraged the device's built-in GPS for far more accurate real-time tracking compared to cell-based methods. This version integrated interactive maps to visualize friends' locations as pinpoints, enhancing the core sharing mechanics with visual context, and allowed users to post check-ins with photos. A key update in 2010 introduced push notifications, allowing users to receive instant alerts about nearby friends or location changes without manually refreshing the app. Platform expansions followed swiftly, with support added in June 2008 and Android compatibility in December 2008, enabling broader accessibility across major mobile ecosystems. By 2010, Loopt released upgraded versions for both and , incorporating cross-platform syncing via cloud servers to ensure seamless friend location updates regardless of device type, alongside enhanced user interfaces featuring hybrid maps that combined satellite and street views for improved navigation.

Business Aspects

Funding and Valuation

Loopt began with seed funding from in 2005, which provided essential early-stage support for its founders, including , to prototype the location-sharing application. In 2006, the company raised $5 million in Series A funding led by and (NEA), marking a key milestone that enabled initial product rollout and partnerships with mobile carriers. Loopt followed this with a $12 million Series B round in July 2007, again led by and NEA, to fuel user growth and technological enhancements amid rising interest in GPS-enabled services. Subsequent funding included a $7.1 million extension in March 2009 and a $15 million Series C round in May 2010 from the core investors, bringing total capital raised to approximately $39 million across five rounds by 2011. Sequoia Capital and NEA were instrumental backers, providing not only capital but also strategic guidance to navigate the competitive mobile landscape. During the smartphone surge, Loopt sought valuations up to $500 million, reflecting optimism in the location-based services sector, though its ultimate acquisition by valued it at $43.4 million in 2012.

Revenue Model

Loopt's revenue model centered on leveraging its location-based technology through carrier partnerships and , with additional income from user subscriptions for enhanced features. The company established revenue-sharing agreements with major U.S. mobile carriers, including , Sprint, and Verizon, which pre-installed the Loopt app on devices or bundled it with data plans. These partnerships allowed Loopt to earn a portion of monthly service fees charged to users, typically around $3.99 to $5, as well as licensing fees for integrating its platform. For instance, carriers often handled billing and provided distribution, enabling Loopt to reach millions without relying solely on app stores. Introduced in 2009, these deals were crucial for early growth, as they embedded Loopt directly into users' phones. In parallel, Loopt monetized through location-targeted advertising, delivering personalized offers and coupons based on users' proximity to businesses. Partners such as , Target, and sponsored deals visible in the app, with Loopt earning from ad placements and click-throughs to partner sites like . This approach emphasized hyper-local promotions, such as nearby restaurant specials, which reportedly generated seven times more engagement than traditional ads. By 2010, features like Loopt Star further integrated these ads as "virtual loyalty cards," rewarding check-ins with discounts to drive user retention and advertiser interest. User subscriptions provided another stream, offering premium access to advanced functionalities beyond the free basic version. Starting in 2009 with the app launch, subscribers paid approximately $3.99 monthly for features including background tracking and unlimited updates, billed via carriers to simplify payments. This tier targeted power users seeking seamless integration without manual check-ins, though remained secondary to partnership revenues.

Controversies and Challenges

SMS Invitation Problems

In its early years, Loopt's SMS-based invitation system for adding friends faced notable technical and challenges, primarily stemming from the platform's reliance on mobile carriers for message delivery. Launched in 2006 as an -centric service for feature phones, Loopt allowed users to invite contacts by sending text messages via a shortcode. A prominent example occurred in July 2008 following the iPhone app launch, where a software caused the "Who's on Loopt" feature to automatically select all contacts from a user's and send unsolicited invitations without clear user confirmation. This led to widespread perceptions of , as recipients received unexpected messages from Loopt's shortcode, prompting frustration and reports of unwanted intrusions into personal networks. Users expressed irritation over the lack of control, with some incurring carrier charges for replies or facing social backlash from contacts who viewed the invites as intrusive , further contributing to complaints directed at both Loopt and mobile carriers. The incident highlighted broader vulnerabilities in SMS-based , where carrier-enforced limits on message volume and content—intended to curb spam—interfered with legitimate invitations, sometimes resulting in delivery error rates that hindered user acquisition. To address these problems, Loopt quickly disabled the faulty feature and issued a public apology via its blog, emphasizing that the system required explicit user opt-in for invites and clarifying that no automatic spamming occurred outside of the glitch. By late 2008, the company rolled out software updates to refine the invitation process, limiting bulk selections and adding clearer prompts. Over the following years, Loopt mitigated ongoing delivery challenges through strategic carrier partnerships, securing official support from major U.S. networks including Sprint, Verizon, and Boost Mobile, which enabled whitelisted shortcodes for more reliable SMS transmission. By 2010, as smartphone adoption grew, Loopt shifted emphasis to app-based invitations within its updated iPhone and BlackBerry platforms, reducing dependence on SMS and integrating in-app friend requests to bypass carrier-related bottlenecks. This evolution improved onboarding reliability while minimizing user complaints related to undelivered messages and spam-like experiences.

Privacy and Regulatory Issues

In 2008, Loopt faced significant privacy backlash from critics concerned about its default location-sharing features, which lacked sufficiently granular user controls for opting out of data dissemination. Advocacy groups highlighted broader risks associated with location-based services like Loopt, emphasizing the potential for invasive without explicit, user-managed permissions. Media reports amplified these concerns, noting that the app's automatic sharing of users' real-time positions with friends could expose individuals to unintended and misuse of . Regulatory scrutiny intensified in 2009 when the and congressional committees examined location-based services under frameworks like the (COPPA). Loopt's practices came under review during a House Committee on Energy and Commerce hearing on consumer privacy, where the company affirmed its compliance with COPPA by setting a minimum user age of 14 and implementing age-screening mechanisms to prevent underage registration. This led to the introduction of enhanced age verification gates, allowing parents to request termination of accounts for minors and ensuring no collection of from children under 13 without . In response to these criticisms and inquiries, Loopt introduced privacy-enhancing features, including a "ghost mode" equivalent that allowed users to disable sharing entirely or broadcast a fixed, manual to maintain . The company also added options for deletion, enabling users to remove friend connections and associated histories upon request, while reinforcing multi-step opt-in during registration. These measures aimed to empower users with fine-grained controls over who could access their and for how long. Loopt's location-tracking capabilities drew broader attention to stalking risks, with users and advocates citing potential misuse of shared data to enable or unwanted pursuit. While no major lawsuits directly targeted Loopt for stalking incidents, reports documented cases where similar GPS-enabled apps facilitated real-world threats, prompting calls for stronger safeguards against data exploitation in civil actions. The (ACLU) underscored these dangers in analyses of location-based services, linking them to documented stalking episodes involving mobile tracking.

Legacy and Impact

Influence on Location Services

Loopt, launched in , pioneered location-based social networking by enabling users to share their real-time locations with selected friends via mobile devices, introducing proximity alerts that notified individuals when contacts were nearby. This functionality predated the explicit mechanics popularized by Foursquare in 2009, as Loopt's early emphasis on passive, background location tracking laid the groundwork for active social interactions tied to . By integrating GPS with social features at a time when such hardware was emerging in consumer phones, Loopt helped define the core of geosocial apps, focusing on privacy-controlled sharing to foster real-world connections. The company's innovations created ripples across the industry, inspiring major platforms to adopt social location elements. Facebook's Places feature, introduced in 2010, directly competed with Loopt's model of map-based friend discovery, prompting integrations that allowed Loopt users to overlay friends on its interactive maps. Similarly, Loopt's approach to real-time geolocation influenced subsequent developments in ' sharing capabilities and Snapchat's Snap Map, which built on the concept of voluntary, friend-specific location broadcasting to enhance social utility. These adaptations expanded location services beyond niche apps into mainstream ecosystems, accelerating the growth of a market projected to double from $1.9 billion in 2010 to $3.8 billion by 2012. Loopt contributed to a broader cultural normalization of real-time location sharing, shifting perceptions from risks to convenient social tools and paving the way for gamified applications. Its emphasis on opt-in alerts and friend proximity encouraged users to engage with their physical surroundings socially, a precedent echoed in the location-driven mechanics of later that reward and interaction. This evolution is evident in the widespread adoption of geosocial features, where Loopt's early model helped build user familiarity with blending digital networks and real-world movement. Loopt's conceptual contributions are reflected in its intellectual property, with the company's patents on location-aware social networking cited in subsequent filings related to geosocial technologies, such as AU2011292292B2. The acquisition of these assets in 2012 valued at $43.4 million highlighted their role in advancing mobile location paradigms.

Post-Acquisition Integration

Following its acquisition by Green Dot in 2012 (announced in March and completed in April), Green Dot integrated Loopt's key employees into its organization, with the Mountain View headquarters serving as a dedicated hub for mobile technology and product development. A retention pool of $9.8 million was allocated to incentivize key Loopt personnel to remain and contribute to Green Dot's initiatives. The retained Loopt team was instrumental in developing GoBank, Green Dot's innovative mobile-only checking account launched in a limited beta in January 2013. This product incorporated elements of Loopt's expertise in mobile and geo-location application technology to enhance user engagement and payment functionalities within Green Dot's prepaid ecosystem. GoBank enabled features such as mobile check deposits, transfers, and intuitive budgeting tools, marking an early application of Loopt's mobile innovations to banking services. Loopt's real-time location-based rewards marketing capabilities were repurposed to support Green Dot's mobile wallet and payment solutions, aiming to deliver targeted retailer offers and improve for prepaid cardholders. By 2016, the GoBank platform, partially built on Loopt-inherited technology, had expanded to power broader Green Dot products, including enhanced experiences. Vestiges of Loopt's contributions may persist in Green Dot's embedded finance offerings, such as geolocation-enhanced features in products like GO2bank (launched in 2021 as a successor to GoBank), though the original Loopt app and code were discontinued shortly after the acquisition.

References

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