RackUp is a new start up that was presented at the TechCrunch50 conference. It aims to disrupt the $100 billion gift card market by venturing into the online auction platform.

The auctions work on the principle of who bids first, and if a person bids first and loads of people come later, his particular bid would have more value. The idea seems to be interesting but is not convincing enough. The cards might come with an additional bonus but in spite of that many people may not be encouraged to use the service as it all seems so hazy.

Well known brands such as American Airlines, Nespresso, Nike Golf and Travelocity have been roped in to create a better awareness about the start up. Perhaps it actually works for you never know how a start up might end up being. Auctions have also lost a huge market now, as the recession is only getting worse and there seems to be no let up whatsoever.