I own 2 business so hopefully this helps. I see one main flaw. If you could be in multiple groups and I have 100 people all in the same group in 100 different groups they will reach the goal 100x faster and it could not be profitable. 100x faster for one person and all 100 making it 100x faster that will be a massive problem. Groups are fine but only one group per account. Also what if people in the group are slacking on a person would do 10k steps another will do 100. You need to set a standard amount of steps per week since daily is hard and it's far to others. Have you seen how much it is to create an app? Unless you code it great but if not it could cost around 60k. How will you advertise this to the masses? You will need to buy apps to advertise you and I'm not sure how expensive that is but at least steem is a startup for you. Your target market is fine and perfect in my opinion to be big enough. Making yourself unique can be easy I love the local business idea. You can work your way and actually have them pay you to get discounts. Hey, I'll advertise your account to 100k people who use this app in return for a discount plus 10k. I'd save the biggest and most popular companies for last since they pay out the most and it's a win win. Also you need to find a way for this app to work in the background as well so they don't always need the app open I think that's some location services.
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You pointed out a good issue but I've already been thinking about that. It will not be possible to add so many people to 1 group because then it would be so easy to get a reward.
These are my thoughts about the group idea:
You create a group, then you'll have to choose for which reward you'll go and then you can invite your friends or family. But there will be a specific group size limit on each prize. For example: A family board game : 4 people per group. A free paintball game: 10 people.
Something like that.
There will also be a chatbox available in each group. This way you can motivate eachother to keep on walking. ;) Of course there will always be people that keep on slacking. But I think that will not be a big problem because of the social group pressure.
I'm aware this is a complex app to create and it will take a big budget but I'll have to look more into this when making my financial plan.
Thx for your valuable input.
Sending 2 shares!
I hope it goes well! I will use it for sure. I hope it's only steps not based off steps outside like sweetcoin was.