Optimity purchased Carrot Rewards last month and now wants to relaunch the health app, which shut down in June 2019 after running out of money. (The Canadian Press)
Talking point: This is a turnaround for Carrot, which unsuccessfully sought a $20-million sale, but ended up shutting down while owing over $2 million to Cineplex and Scotiabank’s Scene loyalty program. The firm operated a free app that offered reward points with loyalty providers like Scene and Aeroplan (which cut Carrot in May 2019) for users who met health goals. Carrot’s success was largely subsidized by millions in government funding, but Optimity is looking for a new business model that makes the firm “completely sustainable forever.” So far, over 56,000 people have signed up for the waitlist, and while Optimity doesn’t have a date for the app’s relaunch, it’s already talking about expanding Carrot globally. Carrot has tried that before—it had a short-lived partnership with Public Health England last year.