Niners: No more in-seat merchandise sales or express pickup at Levi’s Stadium

We finally have an official statement from the San Francisco 49ers talking about the team’s decision this season to eliminate in-seat food delivery for the entire stadium and instead offer the service only to those holding club-level seats, news reported first by Mobile Sports Report.

A statement provided to us from Al Guido, president of the Niners, says:

Levi’s Stadium was the first stadium of its size to offer in-seat food and beverage delivery throughout the building, a service no other venue has attempted to date. After conducting a comprehensive offseason review, including analysis of the sections where people took the greatest advantage of the offering and surveys on what matters most to fans sitting in different areas of the venue, we are focusing our in-seat food and beverage ordering service exclusively to non-inclusive Club seating sections for the current season. This change is being done to improve the overall concession service in the venue while allowing us to continue to enhance how this feature can best benefit our fans.

According to the Niners, “non-inclusive” means all club seats where fans don’t have access to the everything-paid-for clubs like the BNY Mellon Clubs on either side of the lower 50-yard-line seats. So to have access to the app-based ordering and delivery, you need to be in a club seat somewhere in the 100 or 200 levels of the stadiums, without a paid-for food and drink plan. The Niners did not provide any numbers about how many or what percentage of Levi’s Stadium fans would continue to have the ability to order concession deliveries.

Also discontinued is the Levi’s Stadium express pickup option, a service the team said was actually stopped last season. The express pickup option allowed fans to order and pay for food and drink ahead of time, and then pick it up at a nearby stand. The Niners also said they are discontinuing the ability for fans to order merchandise and have it delivered to their seats, an option that debuted back in 2014.

Delivery of food and beverage to all seats off the menu at Levi’s Stadium

Screen shot from Levi’s Stadium app from 2015 showing active in-seat delivery option.

The ability for every fan in the house to order food delivery to their seat — one of the signature services of Levi’s Stadium since its opening — is now off the menu.

At Thursday night’s game between the San Francisco 49ers and the Los Angeles Rams, in-seat delivery of mobile-app orders of food and drink was only available to club seat sections at the Niners’ home stadium in Santa Clara, Calif., according to several sources close to the team and the stadium.

Though there is no official statement yet from the team, it’s believed that the in-seat ordering and delivery service — which worked well except for one major early glitch — was mostly popular in premium seating areas at Levi’s, but not widely used otherwise.

While the Niners provided delivery-order statistics for the first year of operation of Levi’s Stadium, since then they’ve only reported orders in vague terms, last claiming average order totals of between 2,000 and 2,500 per game during the 2015 season. It’s also not clear if those numbers included both delivery orders as well as mobile-device orders for express pickup, where fans use the app to place and pay for an order, and then go pick it up at an express window.

The most likely reason for cutting off the service to the full stadium is that fans simply didn’t use it, and at some point it made no sense to keep staffing a service that wasn’t producing any income. What’s still unclear is whether the move is permanent, or whether it could be replaced in time, given that since Levi’s Stadium has opened, the Niners have routinely made changes to how the stadium app works and what services it offers. What was also unclear was how many club seats are still able to order deliveries, and whether or not the express pickup option is also still available.

For Super Bowl 50, the NFL nixed the food part of the delivery service at Levi’s, limiting it to just drinks. However, Super Bowl fans did give the drink delivery and the ability to order food and beverages for express pickup a good workout, with 3,284 total orders, 67 percent higher than the top order mark for a Niners’ regular-season game.

An ambitious experiment

Early on, there was much enthusiasm from the Niners for the in-seat delivery service, and their ambitious goal to make it work for every potential fan in the 68,500-seat venue. While almost every major professional and large collegiate sports venue has some kind of delivery service for premium seats or expanded sections, there is no other football-size venue that has attempted what the Niners have offered at Levi’s Stadium the past three seasons.

Why the full-stadium delivery option never caught on at Levi’s Stadium is most likely due to many reasons, beginning with the fact that it’s still not something most fans expect, unless they are in premium seating areas. There is also the question of how many fans actually download and use the stadium app while at the game, another statistic not regularly reported by teams.

While the service has always been available at Niners’ home games, other events at Levi’s Stadium, like Wrestlemania 31, have declined to have the service available while others, like the Grateful Dead, chose to keep the service in place. According to the Niners, the choice of having delivery available was always made by the event and not by the team.

It’s interesting to note that VenueNext, the app development company started in part by the 49ers, does not have another customer among its growing list of pro team clients that offers full-stadium delivery of app-ordered concessions. Mobile Sports Report has learned that one VenueNext team may start offering drink delivery to fans, but it’s not clear if that will be a full-stadium option.

Another stadium app startup with food-delivery services, TapIn2, has systems to deliver concessions ordered via app to the lower bowl at the Cleveland Cavaliers’ Quicken Loans Arena, and for club-seat sections at the Cincinnati Bengals’ Paul Brown Stadium.

Utah Jazz pick VenueNext for new stadium app

There’s no official announcement yet but the Utah Jazz today confirmed the scoop that was announced by CIO BJ Vander Linden last week at the Mobile World Congress Americas show, that the Jazz will use VenueNext for a new stadium app for the upcoming season.

More details will likely become available as we get closer to the tipoff of the 2017-18 NBA season, but in the meantime it’s interesting to ponder what has become of the equity deal struck between app provider YinzCam and the NBA 2 years ago.

Under the terms of that deal, YinzCam was supposed to “re-do” the stadium apps for 22 of the NBA’s teams, with things like food delivery and ticket services included. With two of those teams (the other is the Minnesota Timberwolves) now having announced plans to use VenueNext, there is a valid question about what is happening with YinzCam and some of its former clients.

Mobile Sports Report has reached out repeatedly to YinzCam CEO Priya Narasimhan over the past couple months, but we have not yet received a reply.

NBA’s Charlotte Hornets partner with VenueNext for new app

The NBA’s Charlotte Hornets are partnering with app developer VenueNext to develop a new team and stadium app, which will be ready before the new NBA season begins, according to a press release from the team and the company.

The deal is VenueNext’s third NBA customer, after previously signing contracts with the Orlando Magic and the Minnesota Timberwolves. The Hornets deal also represents the second NBA team to move to VenueNext’s app platform following a 2015 deal where competitor YinzCam won a contract to redevelop 22 NBA team apps, including the Hornets’.

Like other VenueNext apps, the Hornets’ new app will support extensive digital ticketing services, as well as mobile payments and the ability for fans to use their devices to order and pay for concessions for express pickup at designated stands. The release said the new app will also “continue to remain the primary source of team-related news, video and content for Hornets fans.”

Screen shots of the new app were not available yet. According to the release, the new app will also support real-time scoring and game statistics, along with video highlights and “access to the Hornets’ radio broadcast and social media channels.”

VenueNext, which got its start as the app developer for the San Francisco 49ers and their new home, Levi’s Stadium, also has the NHL’s San Jose Sharks and the Minnesota Vikings among its pro sports team clients. VenueNext also designed the latest app for Churchill Downs, home of the Kentucky Derby. The company has raised $24 million in venture capital, $15 million of which came in a Series B funding last October.

Timberwolves, Lynx partner with VenueNext for new stadium/team apps

The Minnesota Timberwolves and the Minnesota Lynx announced a partnership with app developer VenueNext, under which VenueNext will build stadium and team-content apps for the NBA’s Timberwolves and the WNBA’s Lynx.

The deal represents the second NBA contract for VenueNext, which has already launched a successful app and associated marketing programs with the Orlando Magic and their home arena, Amway Center. The VenueNext partnership with the Timberwolves and Lynx coincides with a current renovation of the teams’ home arena, the Target Center, which will also get a new Wi-Fi network along with the new app in time for the 2017-2018 NBA season. The Lynx app, according to the team, will be ready before the start of the 2018 season.

Screen shot of old Timberwolves app. Anyone got an old Blackberry in a drawer that could run this?

Though service specifics and screenshots of the new apps are not yet available, the press release out today said that fans can expect the usual menu of VenueNext-type app features, including digital ticketing, arena information, and team content. In other arenas, like the NFL’s Levi’s Stadium, VenueNext apps support features such as in-seat concession ordering and delivery; other VenueNext apps like the one for the Kentucky Derby offer mobile betting.

According to the Timberwolves, the new app will replace their current mobile app, which was created by app developer YinzCam. In 2015, YinzCam sold an equity stake in the company as part of a deal to re-do 22 NBA team apps.

(If you search for mobile apps on the Timberwolves website, you can see a geeky-cool photo of the team’s first mobile app running on a vintage Blackberry, which they claim was the first NBA team mobile app.)

VenueNext, which signed the San Jose Sharks as its first NHL client this season, also recently added some more venture funding to strengthen its business operations.

Built.io formally announces sports-app business

Screenshots from Built.io’s under-development mobile app for the NBA’s Miami Heat. Credit: Miami Heat

Built.io, the startup behind the Sacramento Kings’ new team and stadium app, formally announced its “fan experience platform” today, putting the company more directly in competition with market leaders YinzCam and VenueNext.

A San Francisco-based company, Built.io did not have a standalone sports-app business when it was selected by the Kings to be the base app technology for both the Kings’ team app as well as the app for the Kings’ new home, the Golden 1 Center. Since that arena’s launch last year, Built.io has also signed the Miami Heat as a customer, ahead of today’s formal launch of the sports-app platform.

In the larger sports world, YinzCam is by far and away the company with the most apps developed for teams and stadiums, with many of its content-focused developments used by numerous pro league teams as well as many large colleges. VenueNext, which entered the world as the app developer for the San Francisco 49ers’ new Levi’s Stadium a few years ago, has since signed up multiple pro teams like the NHL’s San Jose Sharks as well as entertainment entities like Churchill Downs, home of the Kentucky Derby.

Of the two market leaders, Built.io’s platform-based approach to app building — where third-party components for features like wayfinding and parking can be added via an API structure — is more like VenueNext’s, though YinzCam also has the ability to add third-party components as needed. The challenge for all stadium- and team-app builders, as well as for venue owners and teams, is to get fans to download and use the apps, so that teams can take advantage of the opportunities afforded by digitally connected customers.

Screenshot of part of the Built.io app for the Kings.

While there is plenty of promise and perceived opportunity in team and stadium apps, the current reality sees fans at stadiums using public social-media apps like Facebook, Snapchat, Twitter and Instagram, or other tools like email and search, far more often than team- or stadium-specific apps. However, by driving fans to use apps for digital ticketing and other necessary service transactions, team and stadium apps are likely to be more used over time, following the adoption curves for other businesses like coffee shops and airline tickets.

Though still small, Built.io has been around for a bit, as it was founded in 2007. The company has previous experience connecting larger enterprise businesses, experience founder Neha Sampat told us will work well as stadiums and teams become more connected in all their businesses.

“What the Kings are trying to do is a large-scale enterprise use case,” said Sampat in an interview last year. “There are a lot of big-data analytics and so much personalization that is dependent on data.”

Sampat said Built.io’s model of a “back end as a service” and its ability to quickly connect other programs’ APIs should be a good fit for the Kings, as well as for other teams looking to blend more services and functions into team and stadium apps.

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