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uBid.com was an online auction style and fixed-price shopping website offering goods sold directly by the company and items sold by pre-approved third-party merchants. The site specialized in excess new, refurbished, and overstock consumer electronics such as computers, electronics, home goods, jewelry, watches, and cellular phones.

Key Information

History

[edit]

uBid.com was formed and launched in 1997, originally as a subsidiary of PC Mall. In December 1998, during the dot-com bubble, the company became a public company via an initial public offering, and achieved a market capitalization of over $1.8 billion at one point. After pricing at $15/share, the stock price reached $67 per share on its first day of trading.[1][2] The company officially spun off from PC Mall with its co-founding management team in 1999. Ownership has changed multiple times over the years.[3][4][5] In 2000, CMGI (now Steel Connect) acquired uBid in a stock transaction.[6] In June 2001, the company reached an agreement to feature its listings on Yahoo! Auctions.[7] In November 2002, the company laid off 52 employees.[8] In 2003, CMGI sold uBid to Takumi Interactive, owned by Tom Petters and Petters Group Worldwide.[9] In 2006, the company acquired the assets of Bidville.com.[10]

In 2010 the company underwent an involuntary bankruptcy petition.[11] In October 2018, the company merged with Incumaker and in February 2019, the company changed its name to uBid Holdings, Inc. In 2020, the company began rebranding itself as a restaurant and entertainment digital coupon company after purchasing Restaurant.com and was renamed to RDE, Inc.[12] As of 2022, the uBid website had been taken offline.

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UBid

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uBid.com was an American e-commerce platform that operated as an online auction and fixed-price marketplace from 1997 until its closure in 2022, specializing in the sale of new, overstock, refurbished, and closeout merchandise from major brands such as electronics, computers, and consumer goods. Founded as a subsidiary of Creative Computers, Inc., a direct marketer of personal computers, uBid initially focused on moving excess and refurbished inventory through timed auctions, quickly establishing itself as the second-largest online auction site after eBay in the late 1990s. The platform differentiated itself by requiring pre-approved third-party sellers and taking commissions on sales, while offering a mix of business-to-consumer direct sales and limited consumer-to-consumer auctions to build trust and reduce fraud risks compared to open marketplaces. In 1998, uBid went public on under the ticker UBID, with its soaring over 300% on the first day, reflecting the dot-com boom's enthusiasm for internet retail ventures; the company was later acquired by CMGI Inc. for $400 million in stock in 2000 amid the peak of that era. By the early , uBid shifted emphasis from pure auctions to fixed-price deals on excess , shutting down its consumer-to-consumer site Bidville in 2008 to streamline operations toward business-to-consumer sales. In 2010, the company faced an involuntary petition. The company underwent multiple ownership changes, including a under uBid Holdings Inc. in 2019, but faced challenges from market saturation and evolving trends, ultimately leading to the site's offline status and the entity's deadpooled classification by 2022. At its height, uBid reported quarterly revenues exceeding $60 million and served as a key player in the early online discount retail space, influencing later platforms focused on trusted surplus goods trading.

Overview

Founding and Launch

uBid was established in September 1997 as a wholly-owned subsidiary of Creative Computers Inc., doing business as PC Mall, a direct marketer of personal computers headquartered in Torrance, California. The company was founded by Sal Esposito, who served as a key early executive and chief operating officer. The initial purpose of uBid was to liquidate excess, refurbished, and overstock inventory of computer hardware and consumer electronics through an online auction format, helping the parent company clear its stock efficiently. This approach leveraged the burgeoning internet to create a marketplace for discounted goods, targeting business-to-consumer sales in the nascent e-commerce sector. uBid.com, the company's website, launched the same year, quickly positioning itself as an early rival to eBay by offering auction-based sales of technology products. Headquartered initially in , uBid experienced rapid early adoption, amassing over 5 million registered users by the early 2000s as gained traction. The platform's focus on auctions for surplus tech items helped it carve out a niche in the competitive during this foundational period.

Business Model

uBid employed a hybrid auction model that integrated English-style auctions, characterized by competitive where participants incrementally increased offers to outbid rivals, with fixed-price "Buy It Now" options enabling immediate purchases at predetermined prices, which terminated the auction upon acceptance. This approach balanced the dynamic engagement of bidding wars with the efficiency of direct sales, appealing to diverse buyer preferences for electronics, jewelry, and other merchandise. The platform emphasized business-to-consumer (B2C) , directly selling new, overstock, closeout, and recertified brand-name goods from manufacturers, while also facilitating auctions by pre-approved third-party sellers to expand variety under stricter vetting processes than models. Unlike eBay's consumer-to-consumer () focus, uBid prioritized controlled, -driven sales to clear excess stock efficiently, initially launched in to support its company's computer retail operations. Revenue streams included seller commissions on auction closings—5% on sales up to $25, 2.5% on portions from $25 to $1,000, and 1.25% on amounts exceeding $1,000—alongside modest listing fees of 5 cents to 75 cents per item, scaled by starting or reserve price, and income from site advertising. uBid optimized low-cost customer acquisition through targeted digital ads, notably Google AdWords, which reduced registration costs by 25% over six months and doubled conversion rates by refining keywords for slow-moving inventory. Post-2001 relaunch, uBid consolidated three auction channels—uBid for listings, preferred partner s, and third-party seller offerings—into a unified interface to simplify transactions and enhance across buying and selling. This integration supported streamlined operations while maintaining emphasis on vetted, high-volume deals.

Growth and Operations

Public Offering and Expansion

uBid went public on December 3, 1998, with shares priced at $15 each on the under the ticker UBID. Trading began the following day, opening at $40 per share and closing at $48, a 220% increase from the offering price, amid volatility partly attributed to institutional investors quickly flipping their allocated shares. The raised approximately $25 million through the sale of 1.8 million shares. Following the IPO, uBid's stock experienced significant gains during the dot-com boom, peaking at $188 per share on , , which valued the company at around $1.5 billion in . In June 1999, uBid completed a spin-off from its parent company, PC Mall, Inc., becoming fully independent via a tax-free distribution of shares to PC Mall stockholders. The company reported strong revenue growth that year, reaching $175.7 million for the full fiscal period, reflecting rapid scaling in the market. By user base, uBid had emerged as the second-largest U.S. platform behind , with over 1.5 million registered users by late 1999. To support its expansion, uBid relocated its headquarters from , to in December 1999, aiming to access a larger talent pool and improve . The company also pursued high-profile branding initiatives, including sponsorship of a main entrance gate at in , to enhance visibility among sports fans. As part of its growth, uBid launched international operations, including a site in in late 1999. However, the dot-com era brought challenges, including a high cash from aggressive and infrastructure investments, as well as intense competition from , which prompted uBid to emphasize auctions of refurbished and overstock electronics to maintain profit margins.

Products and Services

uBid primarily offered new, refurbished, overstock, and closeout merchandise through its platform, targeting budget-conscious consumers with discounted goods. Core product categories encompassed , including computers and cellular phones, as well as jewelry, , and housewares. The company's inventory was sourced directly from manufacturers, retailers, and distributors liquidating excess stock, alongside recertified items derived from customer returns or demonstration models. This approach allowed uBid to provide high-quality, brand-name products at reduced prices, with a particular emphasis on refurbished technology to attract value-seeking buyers. By the early , uBid had expanded its offerings to over 25 categories, a growth facilitated by its 1998 . In 2001, the platform introduced a fixed-price option, enabling direct purchases without . Further service enhancements came in through the acquisition of Bidville.com's key assets, which integrated niche tools into uBid's ecosystem. Unique features included high-value monthly auctions that concluded on Fridays, accompanied by a 2.5% buyer's commission. At its peak, uBid boasted over 5 million registered users.

Ownership Changes and Decline

Acquisitions and Mergers

In February 2000, amid the dot-com era's consolidation wave, CMGI Inc. acquired uBid.com in a stock-for-stock transaction valued at approximately $407 million. This deal integrated uBid into CMGI's expanding portfolio of internet ventures, reflecting broader industry efforts to scale platforms through mergers. CMGI, which underwent subsequent rebranding and now operates as , Inc., viewed the acquisition as a strategic enhancement to its holdings. By April 2003, facing post-bubble market pressures, CMGI divested substantially all of uBid's assets and non-related liabilities to Takumi Interactive, Inc., a newly formed subsidiary of ' Petters Group Worldwide, for an undisclosed sum. The sale relocated uBid's to and aligned it with Petters Group's retail and wholesale operations, marking a shift from independent tech-driven auctions to conglomerate-backed expansion. Under this ownership, uBid prioritized synergies with wholesale distribution channels to broaden its merchandise sourcing and sales model. In July 2006, during a phase of operational stabilization, uBid purchased key auction assets from Bidville.com, an established site, for an undisclosed amount. This asset acquisition bolstered uBid's infrastructure and user base, allowing it to incorporate Bidville's established formats and inventory without a full entity merger. The move supported uBid's adaptation to evolving online retail dynamics under Petters Group oversight. The Petters ownership period emphasized wholesale integration to diversify beyond pure auctions, but it concluded amid turmoil following ' December 2009 conviction for masterminding a $3.65 billion involving fraudulent purchase orders and investor deception. This scandal's fallout indirectly strained uBid through disruptions in the parent conglomerate's financing and operations. In October 2018, uBid Holdings Inc. completed a merger with Incumaker Inc., under which Incumaker emerged as the surviving corporation, prompting significant operational restructuring and a pivot toward broader technologies. These successive ownership transitions—from CMGI's tech consolidation to Petters' retail focus, the Bidville enhancement, and Incumaker's tech revival—profoundly reshaped uBid's strategic direction, positioning, and resilience in the competitive sector.

Bankruptcy and Shutdown

In late 2009, creditors filed an involuntary Chapter 11 bankruptcy petition against Enable Holdings, Inc., uBid's parent company, on October 22, citing unpaid debts and liquidity issues amid sharply declining revenues. This action was exacerbated by the fallout from Tom Petters' 2009 conviction for orchestrating a $3.65 billion Ponzi scheme through Petters Group Worldwide, which had acquired uBid in April 2003 and led to asset freezes across affiliated entities, severely restricting operational funding. The scheme's exposure in 2008 had already triggered Chapter 11 filings for Petters Group companies, compounding uBid's financial strain as investor confidence evaporated and credit access dried up. During the court proceedings in the U.S. Bankruptcy Court for the Northern District of Illinois, creditors contested Enable Holdings' liquidity management and pushed for asset liquidation to recover claims, while the company's valuations were depressed by overwhelming competition from eBay and Amazon, which dominated the online auction and retail markets. uBid's assets, including its inventory and platform technology, were appraised at significantly reduced levels due to market saturation and the broader e-commerce shift toward fixed-price models over auctions. The proceedings highlighted ongoing operational challenges, with net revenues dropping to $31.6 million in 2008 from $43.1 million in 2007, driven by reduced consumer spending during the recession. Post-bankruptcy, uBid emerged under new ownership with limited relaunch efforts in led by Chicago-based technology executives aiming to revive its auction platform, but the company continued to incur persistent losses and experienced frequent site instability from underinvestment in infrastructure. These issues stemmed from an accumulated deficit exceeding $48 million by the end of 2008, further widened by the 2008 recession's impact on and vendor relationships. By 2022, after over two decades of operations marked by ownership shifts and financial struggles, uBid.com was taken offline, concluding its auction services. The closure reflected cumulative losses surpassing $200 million since its founding, underscoring the toll of economic pressures and competitive erosion in the sector.

Legacy

Impact on E-commerce

uBid played a pioneering role in the online auction landscape by launching in 1997 as one of the earliest platforms dedicated to business-to-consumer (B2C) auctions, following Onsale.com's debut in , with a focus on refurbished and excess inventory. This specialization helped popularize auctions as a viable channel for liquidating overstock goods, distinguishing uBid from models like and paving the way for hybrid auction-fixed-price formats, such as its "u Buy It" feature that allowed immediate purchases at set prices. By emphasizing vetted, brand-name products from corporate partners like and , uBid demonstrated how structured online auctions could efficiently clear surplus stock, influencing the broader adoption of digital marketplaces for inventory management. In terms of market influence, uBid rapidly grew to become the second-largest site by the late 1990s, with monthly revenues reaching $2 million by August 1998 and over 3,000 daily transactions by the early 2000s, helping normalize online liquidation sales as a standard practice. Innovations like requiring pre-approved corporate sellers—limited to established businesses with at least three years of operation—reduced risks compared to open platforms, fostering trust in B2C models and encouraging retailers to integrate auctions into their digital strategies. As eBay's primary competitor during this period, uBid's presence sharpened industry competition, prompting enhancements in and across the sector. uBid's cultural footprint extended to academic and media discussions of early internet retail, where it was portrayed as a dot-com success story amid the bubble's exuberance; for instance, its CEO's bold claims about the internet's transformative power exemplified the era's optimism. Publications like Communications of the ACM highlighted uBid alongside eBay in analyses of auction dynamics, including sniping strategies and seller-aligned bidding agents like "Bid Butler," which influenced research on bidder behavior and market efficiency. The platform's eventual decline underscored key industry lessons, revealing the perils of inflated valuations—such as its $400 million acquisition by CMGI in 2000—without sustainable profitability, which tempered post-bubble e-commerce investments and emphasized the need for viable business models over speculative growth. Over its operational history, uBid facilitated hundreds of millions in sales volume, significantly expanding consumer access to discounted technology and contributing to the maturation of online retail ecosystems.

Current Status

Following its 2010 Chapter 11 bankruptcy filing by parent company Enable Holdings, uBid experienced a series of ownership and operational transformations that reshaped its trajectory. In February 2019, Incumaker, Inc. restructured and changed its name to uBid Holdings, Inc., with Ketan Thakker serving as to oversee the development of a diversified platform. uBid Holdings completed the acquisition of Restaurant.com in March 2020, marking a strategic pivot away from its legacy model toward a business-to-consumer platform centered on digital discount certificates and coupons for restaurants and venues. In December 2020, the company rebranded as RDE, Inc. (Restaurant, Dining, and ) to align with this repositioning, emphasizing incentives and rewards in the dining and leisure sectors. Auction operations have long ceased, with the uBid.com domain inactive and redirecting to no content since at least , as the entity now operates solely through brands like Restaurant.com, focusing on B2C digital deals without ties to its original framework. As RDE, Inc., the company generated revenues of approximately $87.15 million in 2023. In 2024, full-year revenue reached $88.93 million. For the second quarter of 2024, revenue was $20.0 million. In October 2024, RDE, Inc. rebranded further to Giftify, Inc., a publicly traded entity on the under the ticker , headquartered in —a suburb of —continuing its emphasis on digital incentives across retail, dining, and entertainment. As of the third quarter of 2025 (ended September 30, 2025), Giftify reported net sales of $18.8 million (down from $23.2 million in Q3 2024) but gross billings increased 28.8% year-over-year to $39.1 million, with expanding to 20.0%.

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