Life360, a security and tracking service that helps its users keep tabs on the whereabouts of family and friends who also use the app, is cutting its user data sales business to just two partners: Allstate Arity and Placer .have (via markup). This news comes after the company announced a deal to acquire the Tile object tracker in November and a December report from markup said Life360 was the source of precise location data for a dozen data brokers. This report cites industry sources who have called Life360 one of the largest sources of data.
At the time, CEO Chris Hulls pushed back on that claim, saying that “with around 30 million active users, we only represent a very small portion of the overall market”, while acknowledging that his data sales have grossed around $16 million in 2020. markup reported that this represented about 20% of its overall revenue for the year, even before including $6 million from its partnership with Allstate Arity. For 2021, the company reported 42% year-over-year revenue growth, which included previous commercial data collection contracts.
Life360 was one of the largest sources of raw data in the multi-billion dollar location data industry.
— The markup (@themarkup) January 27, 2022
Life360 has a new data collection agreement with Placer.ai, which the company says marks the start of its exit from the “traditional” data brokerage business, which will only include “aggregated analytics” which, will help retailers better understand customers, she says. From Life360’s quarterly business report released yesterday:
With this agreement, Placer.ai will provide critical data insights and analytics services to Life360, which will improve the product experience for our users. As part of this partnership, Placer will have the right to market only aggregate data related to site visits during the term of the contract. We have begun terminating our relationships with all other location data partners except Allstate/Arity, which will continue.
Life360 recognizes that analyzing aggregated data (e.g. 150 people driven by the supermarket) is the wave of the future and that companies will increasingly prioritize insights over data that does not rely on level-level identifiers. device or other individual identifiers at the user level. Therefore, we believe this partnership will allow us to spend less time navigating the rapidly changing regulatory and platform environment, while simultaneously reducing business risk.
This agreement includes a minimum revenue guarantee based on the size of Life360’s active user base, which we believe will preserve revenue in line with CY21 results for the duration of the three-year agreement. Life360 will also receive a 10-year exercisable warrant to purchase up to US$25 million in Placer.ai, which recently completed a US$100 million capital raise. The Agreement also expressly excludes
Tile and Jiobit device data to underscore our clear message that Tile and Jiobit device data is not and will never be sold or monetized.
We asked Life360 CEO Chris Hulls in December what his company would do if its (soon to be ex) partners, like X-mode or Cuebiq, sold identifiable data to the government — and Hulls responded by saying the partners would sued for breaching their Agreement.
Allstate Arity is the second of two exceptions in Life360’s location tracking reduction. Functionally, Allstate would need to know how fast the device in a car is moving, calculate the G-forces of a crash, and ultimately report the location of the crash to authorities so the devices security are working. It remains to be seen how it will use trip information to gain insights other than driver safety.
Users’ participation in sharing their aggregate data with Placer.ai is optional, however, it will remain an opt-out action in the app settings.