OpenTable will pay $10 million for Foodspotting app
The online restaurant reservation company said it will pay $10 million to buy Foodspotting, an application for finding and sharing photographs of dishes at restaurants.
The acquisition underscores OpenTable’s push into mobile, which it expects to spur its next round of growth. In October, the company introduced a free service that would make it easy for restaurants to optimize their websites for mobile devices.
The app will allow users to search for a type of dish or a specific restaurant, and show user-uploaded photographs of various meals, letting users recommend food and see what others suggest.
Foodspotting started in 2010 and has raised about $3.75 million. More than 3 million dishes have been photographed and shared through the app.
The San Francisco-based company’s revenue model includes monthly subscription charges from restaurants and a fee for each guest seated through online reservations.
OpenTable, which seats about 10 million diners every month, said in November it would face a shaky fourth quarter after the major storm Sandy interrupted operations at many of the company’s restaurant clients, primarily from Washington D.C. to Boston.