Israeli startup FairFly (website currently in Hebrew only), which has developed an app that notifies airline ticket purchasers when the price drops after they have bought their tickets, has announced the completion of a $2 million A round from Blumberg Capital.
Founded in 2013, the company launched its app five months ago. It raised hundreds of thousands of dollars in a seed round from Waze cofounder Uri Levine, who is now chairman of the company. Levine mentored the three FairFly cofounders - CEO Aviel Siman-Tov, CMO Gili Lichtman, and CTO Ami Goldenberg - in the framework of the Zell Entrepreneurship Program at the Interdisciplinary Center (IDC) Herzliya. Following his fund's investment, Alon Lifshitz, Blumberg Capital's managing director Israel, will join FairFly's board of directors.
Siman-Tov said, "The financing round was designed to enhance development of the product and expand the company's overseas business. The company also plans to enter other tourism niches at a later stage."
Lifshitz said, "FairFly is entering the tourism market, where it's changing the rules. Up until now, we've gotten used to a process with price comparisons until the decision to buy is taken. FairFly has changed our thinking, and has shown that the buying process does not end - even after we buy the ticket, the price can still be reduced. We feel very connected to this way of thinking and the fact that this is a big market, to which we are confident that FairFly is providing a suitable solution. We're glad to be a part of the company's development and success."
FairFly has developed a product that enables online purchasers of an airline ticket who have downloaded FairFly's app and registered to send the e-ticket to the company's e-mail address. At this stage, the company's service enters the picture. In real time, during the entire period until the flight actually takes off, it monitors the web and international airline ticket databases to find a cheaper price, taking into account the fee for canceling the reservation. The system notifies the user when it locates an opportunity to save at least 5% of the amount paid for the original ticket after the cancelation fee is deducted or $50 (whichever is higher).
The company makes it clear that the airline ticket will be canceled only after the cheaper ticket is purchased, except for a case in which the ticket has been purchased from a travel agency. They also point out that the money paid for the original ticket will be refunded to the user's account within a few weeks, according to the policy of the entity from which it was purchased.
The company also notes that the notices sent to users are not based solely on the price; they take into account a better deal overall, including shorter flight duration, more convenient takeoff and landing times, an airline of the same quality, and a more attractive airport.
Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2015
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