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Summary:

Geodelic, a developer of location-based applications, has launched an iPhone application and signed a major deal with Korea Telecom to provide a special Seoul version of its app. The company is riding the geolocation wave. It eventually wants to open its publishing system to consumers.

Ever since we first tried out Sherpa, a location-based services application, we became fans of Geodelic, the Santa Monica, Calif.-based company behind it. The app, which automatically learns a cell phone user’s favorite locations and lifestyle behavior and was initially launched exclusively for T-Mobile’s myTouch phone, has been downloaded some 350,000 times. Adding to that user base are the recently released versions of Geodelic for Android devices as well as the iPhone. (Click here to download from the iTunes App Store.)

In the meantime, Geodelic has just signed a deal with Korea Telecom that will see the company create a Seoul-specific application for Korean iPhone users. The move is expected to bring in revenues in the “high seven figures,” CEO Rahul Sonnad told me. Korea Telecom, an iPhone distributor in South Korea, signed a multiyear deal with Geodelic.

This revenue boost will prove to be quite significant for Geodelic, which is hoping to put some distance between itself and a growing number of competitors including Foursquare and Gowalla. Sonnad explained that the reason his company is able to build Seoul Tour is because of its publishing platform. Using it, Geodelic has worked with Universal Studios Theme Parks and Best Buy Stores to create what Sonnad calls “experiences.” It’s also worked with Greenopia, which has created an experience around “green shopping” across the U.S. The company now plans to create airport experiences, which will not only show flight information and airport maps, but will also be able to showcase location-based promotions.

“The publishing system makes us unique,” Sonnad said, “allowing major brands to create hyper-local experiences around it.” But that’s not all. The company is hoping to open up this publishing system to consumers sometime later this year. “Much as Ning made it easy to create social networks for everyone, with Geodelic you will soon be able to create your own location-based, hyper-local experiences,” he said.

It’s a clever idea. Imagine, for example, an experience that centers entirely around the best pizza joints in a particular city. Now imagine thousands of such “experiences.” Geodelic, thanks to the efforts of others, will end up with a fairly deep and accurate database of many different places around the country. I especially like the fact that it’s using location as a way to provide context to local information.

However in order for this plan to succeed, the company needs to do two things: substantially increase the number of its users and get those users to use the service more often. At present, some 100,000 folks check out Geodelic’s Android-specific application once a month and a mere 10 percent of those 100,000 check it out five times or more every month.

In my opinion, in order for one to judge the success and value of a location-based application, one needs to measure the intensity of engagement in addition to the number of downloads. The higher the engagement, the more valuable a location-based application!

Sonnad is betting that with the release of an iPhone app, as well as more city-specific versions of Sherpa, his company will get the big bump it really needs. Let’s hope so -– if not, he will soon be watching one of its competitors take the lead.

This article also appeared in BusinessWeek.com.

  1. Geodelic, a developer of location-based applications, has launched an i Phone application and signed a major deal with Korea Telecoms to provide a special Seoul version of its app.

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  2. I too am a fan of geodelic.

    http://www.theapplegoogle.com

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  3. So creating experiences is similar to many mobile app frameworks where you can customize or easily build your own app with your own content. But embedded in an active Sherpa community it’s becoming much more interesting and there are easier ways to promote vertical apps. They offer the full service, not only the infrastructure part (e.g. app configurator) which is an attractive offer for businesses. Well done, imho.

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  4. I am an avid user of Geodelic and really like it! Very interested to see the developement with Airport experiences. Seems like a no brainer when it comes to travel and having an application like Geodelic would make my airport experience a lot less stressful and maybe even fun…

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  5. I am pleasantly surprised with Geodelic. I have been using an iPhone for about 2 years now. I havent really found an app that is so useful and also engaging. I have tried quite a few location based apps like Where and Foursquare. They seemed to be either lacking in creative UI experience or just an overload of unnecessary integrations, may it be with social chats or ranking systems, whatever it was, it wasn’t for me. I am pretty confident Geodelic hit the nail on the head with it’s aesthetic appeal, interactive functions, and accuracy in database and location awarness.

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  6. I find Geodelic fun to use and ultimately very helpful. Even if I am not searching for something in particular, I open Geodelic just to learn what is around me and where I might be interested in going.

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  7. [...] While the glut of choices can result in app store operators creating a competitive advantage by, say, leveraging recommendation engines in order to help customers separate the wheat from the chaff, it also creates an opportunity for carriers, which can cherry-pick the apps that help them best market their phones. T-Mobile USA worked with Big in Japan, a Dallas-based developer, to feature the app ShopSavvy on the carrier’s Android -based G1 phone at its 2008 launch, and it worked with Geodelic to build a T-Mobile-specific version of the app Sherpa that was pre-loaded on myTouch 3G handsets. A mobile barcode-reading app, ShopSavvy has been downloaded by more than one million U.S. users, and the search app Sherpa has seen more than 350,000 downloads. [...]

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