RackUp.com is a service where people bid on the value of gift cards in quick auctions. Whoever bids first will receive more value on their gift card based on how many bidders join in. If you are in the top 10 winners, then your card will be worth the amount that you put a bid in for and you will also win a free cash bonus.
RackUp already has over 20 retail partners and they have raised $3.5 million in seed capital from angel investors. RackUp is lead by Marc Rochman. Board members include Stanford professor Paul Milgrom and Duke professor Dan Ariely. Some of the brands participating in RackUp services include American Airlines, Nike, and Travelocity.
The service is legal and not considered gambling because you don’t have to pay in order to participate and you don’t lose money, only win more value. The goal of RackUp is to bring “Black Friday” to people’s lives everyday. The service was launched out of stealth mode at the TechCrunch50 conference.