That sounds like a much more promising business than "a site where users submit news and sites, vote them up and write comments about them". I don't mean this is in a snarky way, I'm a reddit user too. Am I missing something?
It was a good idea, just ahead of its time.
J2ME apps involved no carrier participation (though often you had to target all of the profiles), and most devices, including standard Nokia feature phones, could run it. Windows Mobile apps...well that was always completely open and with little carrier control.
And of course...WAP. Largely forgotten now, but the Gopher-like WAP was usable on pretty much every feature phone, optimized for limited displays and input technologies. It was a giant dud for a variety of reasons, but it was always an option back to the turn of the century. And you didn't need a data plan, which remains the #1 impediment to the mobile revolution, though you did get charged usurious rates for the packets you did use.
While an app would have been nice, I guess that you could do something like this with just SMS.
It might stand a chance of being a more profitable business than Reddit, but it's a tough and expensive route to market without experience or a large chain desperate to try the system. Probably pg had good reason to be more risk-averse about the types of business he invested in back in 2005.
Something that actual businesses can use to sell things to people? Sure, there are risks, but at least it can make money.
Plus, the problem he mentioned about integrating with other restaurants' systems is a major one. I'd guess that there are many different order-tracking systems. They'd probably have to customize that hardware solution to each restaurant that already had an electronic order-tracking system.
Now, they could have started out with restaurants that were just using paper (with the hardware appliance just printing stuff out), but that would pretty much exclusively mean small non-chain restaurants, which, again, doesn't scale.
alexis ohanian said... I believe the biggest thing was the dangers of dealing with both cellphone carriers (this is pre "AppStore," remember) who are notoriously closed and slow-moving as well as restaurants, which aren't typically very tech-curious (all the ones I spoke with were taking online orders via fax).
Reddit was a fantastic idea to getting acquired.