Blackbird Labs revealed that it has raised $24 million in a number of funding rounds for its loyalty program and app that aims to link eateries and their customers through its cryptocurrency-powered app.a financing round that was spearheaded by Andreessen Horowitz (a16z), a venture capital firm.Customers tap their phone on an NFC reader to generate a non-fungible token (NFT) membership through Blackbird, which is built on Coinbase’s Layer-2 Base blockchain. NFC readers are the devices that connect smartphones to payment scanners.Users “tap in” to the eatery, at which point the NFT is created.
According to a press release, Blackbird memberships grant access to awards and insider benefits like SMS concierge and off-menu items.The fact that Ben Leventhal, a co-founder of the dining network Resy, serves as the project’s CEO has contributed to its mainstream success; the New York Times carried an article about Blackbird this week without using the word “crypto” once.
“Blackbird will be the first decentralized platform built especially for the hospitality industry,” the paper reads. “Unlike legacy rewards marketplaces which maroon and lock earned points, the Blackbird protocol will eventually allow users to take the points they earn anywhere they go on public blockchains.”
Due to a partnership between Blackbird and Privy, customers no longer need to have a cryptocurrency wallet before signing up; instead, they simply need to sign in with their phone number, which gives them immediate access to a self-custodial wallet.In New York City, Blackbird has signed up over 80 businesses since its inception a few months ago.
“Web3 enables a powerful, new way for restaurants and guests to connect, making each dining experience unique and more meaningful,” said Arianna Simpson, general partner at a16z crypto.
This comes after several businesses tried rewards-based systems using NFTs but had trouble sustaining constant usage.