The Riverside City Council unanimously approved a one-year pilot program Tuesday that will offer residents rewards points for shopping at up to 500 independent local businesses through a mobile app launching in time for the holiday season.
The Riverside Rewards program, powered by Bludot Technologies, allocates a $50,000 rewards fund plus $5,940 in software licensing fees. Based on the vendor's performance data from other cities, the city projects the investment could lead to more than $2.4 million in local spending over five years if the pilot is made permanent.
Residents download the Open Rewards app, link a payment card or upload receipt photos, and earn points redeemable only at other participating businesses.
The program offers 10 percent rewards on launch day and 5 percent throughout the pilot, which runs through December 2026.
The program requires no new equipment, employee training, or changes to how businesses process sales.
City staff cited results from other California municipalities using the same platform. The City of Orange invested $40,000, which led to an estimated $784,000 in local spending within one year. Lancaster documented $600,000 in economic impact from a $30,000 investment.
One public commenter questioned several aspects of the program, including how the $50,000 fund would be held and dispersed by the vendor, whether economic impact projections were independently verified, and how consumer data would be protected under California privacy laws.
"When public funds are placed in the custody of a private company, the public needs clear safeguards," said Ward 1 resident Jason Hunter. "Where exactly will this money be held? What controls will be in place?"
Staff did not directly address these questions during the meeting, though the staff report states the city maintains control over the rewards fund and that any unspent balance will be returned at the end of the pilot term.
The city developed specific eligibility criteria targeting small, independent brick-and-mortar businesses: fewer than 50 employees, a current business license, a physical storefront (no home-based or online-only businesses), and focus on dining, retail, beauty/wellness, fitness, and specialty services.
National chains, franchises, cannabis retailers, tobacco-only shops, and liquor-only stores are excluded.
Staff identified 500 businesses meeting the criteria.
"Really it's the small mom and pop brick and mortar," said Simone Saunders, economic development project manager.
"When people ask us why are we focused so much on economic development, it's what pays for all the nice things we want to do in the community," Councilmember Steven Robillard said.
"A diverse economy has businesses of all types, businesses of all sizes," Mayor Patricia Lock Dawson said. "This is just another demonstration of how we're supporting small business."
The platform will provide the city with dashboards tracking spending patterns, participation rates, and program outcomes.
Staff will report back to council on the program during the pilot year, though specific metrics and a reporting timeline were not discussed at the meeting.
Council will consider a local shopping rewards program and review modifying subdivision restrictions to permit state-required lot splits; the Land Use Committee will review tobacco regulations that could phase out existing shops.
