South Kesteven District Council set to end HelloSK app operations after 2 years

An app which was supposed to boost local business recovery and drive sales to residents post-pandemic looks set to be axed after failing to live up to expectations.

South Kesteven District Council is recommended to end support for the HelloSK app, two years after it was launched, at a meeting of the authority’s Culture and Leisure Overview Committee today (Tuesday, March 26).

It follows a review of the app's performance and future prospects.

HelloSK was launched in August 2022 using a £50,000 injection from the Government’s Welcome Back Fund.

It was intended to aid local businesses and regional recovery after the Covid-19 pandemic and offered advertising, the ability to manage offers, promotions, campaigns, events, orders and bookings as well as a dashboard of data and 24 hour support.

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It also allowed businesses to offer e-commerce services, with a 3% fee going to a third party company to help manage the app. This was lower, said organisers, than the 20-40% platforms such as Amazon, Groupon, Deliveroo and UberEats charged.

Meanwhile, residents would be able to access event listings, purchase products and access offers from local businesses.

When it was first created, the then-council leader Councillor Kelham Cooke said it would be allow "all" SK businesses to have a free profile and promote their business to "thousands" of residents.

In a LinkedIn post about a year ago, the now head of membership at Lincolnshire Chamber of Commerce – and former business and skills officer at South Kesteven District Council – Paul Green said the app would “promote… business to hundreds of thousands of South Kesteven residents directly”.

He suggested the first wave of sign-ups would be limited to 500 businesses.

However, despite initial optimism, the app failed to meet revenue projections set by its developer, Bubltown.

When the app was first launched, its target was to reach 1,000 downloads and 200 business users, and, according to the last report in September, had surpassed that figure by August 2023 with 1,276 consumers and 205 businesses.

However, four months later – in January 2024 – HelloSK had only reached a total of 1,436 downloads and 211 business profiles.

Charts shared with councillors at a meeting in September showed that downloads had spiked in September 2022, but had decreased since then.

The closure recommendation in the report cited financial viability and low user engagement.

“Whilst the app provided a focus of activity and a boost to the local economy in the immediate aftermath of the pandemic, Bubltown have been unable to meet forecast projections made in their initial business case and as a consequence have insufficient revenue to maintain their activity,” said the report.

Alternative options to ending the app would either be to continue as is, or shift the emphasis away from e-commerce. However, officers have warned the council would have to foot a further bill, including a monthly charge of between £2-4,000 to continue services.

“Officers have considered Bubltown’s proposals and concluded there is not a sustainable business case to generate sufficient users, sales and revenue to ensure the app can operate without further subsidy by the council in the years to come,” said the report.

Officers favour moving away from the app, instead looking at initiating partnership activities with Destination Lincolnshire to mitigate the loss of the app's features.

Officers suggest collaboration with VisitEngland-accredited Destination Lincolnshire and stressed the need for economic opportunities, in line with the corporate plan.

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