IAC/InterActiveCorp (NASDAQ:IAC) subsidiary Urbanspoon has a huge userbase on the web and on the iPhone. As a matter of fact, about one million people “shake” the iPhone application per day.
Now Urbanspoon is setting up a reservation system with a pilot of 4 restaurants in Seattle. The reservation system competes directly with OpenTable, a service that has a reservation system that filed for an IPO this past Janaury. Eventually Urbanspoon will be opening up to additional restaurants.
OpenTable pays $300 per month to rent a terminal for reservations. Urbanspoon and OpenTable pay about $1 for every reservation made through the systems.