Standing in line is an experience most people dread. My recent two-hour queue to enter a nightclub in unseasonably cold weather was a stark reminder of how frustrating it can be. Fortunately, there's a startup aimed at changing that.
LineLeap: Skip the Queue and Enjoy the Nightlife
LineLeap, a startup backed by Y Combinator, offers a solution for those tired of long wait times at bars. Using their mobile app, users can purchase front-of-the-line passes for venues partnered with LineLeap.
“As college students, we identified a common issue that countless others face,” says Max Schauff, LineLeap’s co-founder and CMO. “Our favorite college bars had notoriously long lines. The problem was that many bars lacked a transparent way for customers to bypass them during peak times, meaning they missed out on considerable revenue.”
Whether you love or loathe the idea, investors are taking note of LineLeap's momentum. Last month, Y Combinator led a $10 million funding round that included contributions from Alex Pall of The Chainsmokers, among others. This round boosted LineLeap's total funding to $25 million and valued the startup at an impressive $100 million.
From College Towns to National Expansion
Schauff met co-founder Patrick Skelly while both worked at EnvoyNow, an on-demand food delivery service catering to college students. Through mutual connections, they brought Nick Becker on board as the third co-founder.
While Schauff studied at the University of Wisconsin-Madison and Becker and Skelly were at the University of Michigan, the trio began formulating their business plan and developing the LineLeap website.
“We launched on a frigid five-degree night in Madison, Wisconsin,” recalls Schauff. “That first night was a success, igniting our passion. We then spent the next years, mainly during summer breaks, driving from college town to college town to expand our reach.”
Knowing they were not the first to tackle line-skipping, they decided to focus specifically on college bars as their primary market.
They traveled the country, often sleeping in rundown motels or their cars, and sneaked into YMCAs for showers. After years of hard work, they successfully established their business model and applied to Y Combinator, ultimately joining the Summer 2019 cohort.
Strong Growth and Expansion
Fast-forward to 2024: LineLeap has successfully navigated the challenges posed by COVID-19. The startup now operates out of an NYC office with a team of 40 (not including part-time ambassadors). With a growing user base of one million and over 400 college bar partners, LineLeap is set to process over $30 million in payments this year.
“One of our main challenges — getting in front of venue owners and signing them on — has also become one of our strongest differentiators,” Schauff explains. “Securing partnerships with these venues isn’t easy, but we’ve built solid relationships in the industry, backed by a proven track record over the past seven years.”
Expanding Offerings Beyond Line Skipping
LineLeap now boasts a range of features beyond just line-skipping passes. Users can purchase concert tickets, pay cover charges, pre-order drinks, and reserve VIP table/bottle service through the app, using payment options like Venmo, PayPal, or credit cards.
Users also receive notifications about events and promotions, while venue owners can access dashboards for transaction reports and analytics. Events range from DJ nights to football watch parties and stand-up comedy shows.
Additionally, there’s a social aspect: users can connect with friends on LineLeap to see where they have “checked in.” The app even rewards points for activities like snapping photos at venues, which can be exchanged for passes.
LineLeap generates revenue by charging convenience fees akin to Ticketmaster for certain passes, as well as taking a percentage on "newfound revenue" for venues that previously didn’t offer options like skip-the-line passes.
“Venues gain a significant new revenue stream while being able to communicate and market directly to their top customers through our platform,” says Schauff. “LineLeap is completely risk-free for venues, allowing them to partner with us without any downsides.”
Debate Over Equity and Privacy Concerns
However, not everyone is thrilled with the concept. Critics argue that apps like LineLeap cater to wealthier patrons, reflecting an emerging “booming industry of advantages” that can create an unfair experience for those unable or unwilling to pay premium prices.
Some venue-goers are already voicing their dissatisfaction, with one reviewer on the Google Play Store stating: “If a bar makes you pay to make a reservation, find a new bar.”
Schauff confidently reassures users that there is no cause for concern. “There's a new wave of operators embracing innovative technology and data-driven solutions, and LineLeap is leading that charge,” he argues. "Venue operators are increasingly seeking data-backed solutions to enhance their marketing strategies and overall profitability.”
However, privacy issues do arise. When pressed about LineLeap’s data retention policy, including how long user data is stored and the ability to delete it, Schauff referred to the terms of service on the LineLeap website, which do not specify a clear retention timeframe and suggest that they may be unable to fully delete user data due to “technical” or “other operational reasons.”
In a follow-up email, Schauff clarified that LineLeap retains data as long as necessary to provide its services, but customers can request the deletion of their marketing data. Yet some purchase data must be retained for business record-keeping. He also noted that LineLeap does not sell user data to third parties.
For now, Schauff indicates that funds from the recent investment will be used to expand LineLeap’s services to more venues in the nightlife and entertainment sectors, enhance in-app features, and develop a comprehensive customer relationship management platform for bars.
“Our commitment is clear,” Schauff states. “Many have attempted to launch line-skipping services for bars and clubs, but we excel at expanding into multiple markets and ensuring sustainability. We take pride in being long-term partners for our venues.”
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