LineLeap Lets Users Pay to Skip Lines at Bars and Nightclubs

No one enjoys standing in long lines, especially at crowded bars and nightclubs. Fortunately, LineLeap, a Y Combinator-backed startup, offers a solution. The app lets users pay for front-of-the-line passes at venues that have partnered with the company, providing an easier way for customers to skip long waits.

“As college students, we noticed a common problem—our favorite college bars had really long lines,” said Max Schauff, LineLeap’s co-founder and CMO. “Bars didn’t have an open, transparent way of allowing customers to skip the line on their most special nights. And they were leaving a lot of revenue on the table because of it.”

LineLeap’s Growth and Investor Backing

Love it or hate it, LineLeap has caught the attention of investors. In its latest funding round, led by Y Combinator and backed by The Chainsmokers’ Alex Pall, LineLeap raised $10 million, bringing its total to $25 million and valuing the company at $100 million.

Schauff, along with co-founders Patrick Skelly and Nick Becker, first launched LineLeap while still in college. Starting from scratch, they traveled from college town to college town, pitching their service to bar owners, often sleeping in motels or their cars as they built the business.

LineLeap has gained significant traction since its inception. The app now boasts over 1 million users and has partnered with more than 400 college bars across the U.S. This year, LineLeap is projected to process over $30 million in payments, a testament to its growing popularity and widespread adoption.

“One of our biggest challenges — getting in front of venue owners and getting them signed on — also proven to be one of our largest differentiators,” Schauff explained. “It’s hard to sign these venues, and we’ve cracked the code through relationships in the industry and a proven track record over the last seven years.”

Beyond Line-Skipping: Expanding Features

Today, LineLeap has expanded beyond line-skipping passes. Users can also buy concert tickets, pay cover charges, pre-order drinks, and reserve VIP services directly through the app. With integrations like Venmo, PayPal, and Apple Pay, the app offers a seamless payment experience. Users also receive notifications about special events and promotions from the venues they frequent, while venue owners receive analytics and transaction reports.

LineLeap is also building a social aspect into the app. Users can add contacts to see where their friends have “checked in” and earn rewards points for engaging with venues, such as snapping photos. These points can be redeemed for additional passes.

A New Revenue Stream for Venues

For venues, LineLeap provides a new revenue stream through convenience fees, skip-the-line passes, and event tickets. Venues also gain access to data and analytics, allowing them to market directly to their best customers.

LineLeap generates revenue by applying convenience fees, similar to those used by Ticketmaster, on certain passes purchased through the app. Additionally, the company charges venues a fee on "newfound revenue"—income they wouldn’t have otherwise earned, such as the revenue from skip-the-line passes and other services facilitated by LineLeap.

“Venues generate a significant new revenue stream, while also gaining the ability to communicate and market directly to their top customers via the LineLeap platform,” Schauff explained. It’s a no-cost, risk-free partnership for bars and clubs.

Privacy and Fairness Concerns

While LineLeap offers convenience for users willing to pay, critics argue that it raises fairness concerns. Some believe the app is another example of tech allowing wealthier patrons to buy their way out of inconveniences, potentially making the experience worse for others.

Privacy concerns have also been raised, as LineLeap’s terms of service don’t specify how long user data is stored or whether users can fully delete their data. When asked, Schauff declined to offer details, referring to the company’s terms of use.

Future Expansion Plans

Despite the criticisms, LineLeap continues to grow. The startup now partners with over 400 college bars, has more than 1 million users, and is on track to process $30 million in payments this year. With a team of 40 and a headquarters in New York City, the company plans to expand its offerings in the nightlife industry, introduce new in-app features, and build a customer relationship management platform for venues.

“We pride ourselves in being the company that will be our venues’ partner for years to come,” Schauff said.