Dubai: A brand new iPad for Dh31? Or a swanky sports-car for 1 per cent of its actual price of Dh3.5 million?

Or if you are so inclined, how about renting a unit in the Burj Khalifa for Dh1,000 against the actual going rate of Dh100,000?

An online auction site launched last week in Dubai hopes to drum up traffic for itself based on compelling offers like these.

"We are currently working on our patent," said Arif Mirza, the CEO of UniqueAuction.com.

"It's a niche idea, but our audience is mass, and a win-win-win situation for the consumer, vendor and us. It's a platform where they can buy anything and everything at 99 per cent discount, from luxuries to day-to-day necessities."

Unlike other auction platforms, where a used product is the preferred currency of exchange, UniqueAuction.com only puts new merchandise up for sale, with the bid set at 1 per cent of the original price.

Process

A certain number of participants must sign up for each auction process and the winner is decided on bidding a value that no one else has come up with … while staying below the 1 per cent auction value.

For the iPad in question, if there is only one bid for Dh30.98 and more than one for Dh30.99, the winner will be the first. In other words, it is not the highest bid that matters. As for the other bidders, they get a refund on the sign-up amounts they paid to partake in the auction.

So where does the portal make money for itself? While the auction process itself is not going to help, it will be through corporate tie-ins on the auctioned products that the site looks to generate a sustainable cashflow.

While the winner walks off with the booty at the throwaway price, other participants in the bidding can obtain special offers for the same product from the corporate partner. And for its efforts in bringing in a group of buyers, UniqueAuction.com gets a share of the proceeds.

Mirza dismisses vehemently any suggestion that the concept is similar to the many daily deals portals clogging up the UAE's online marketplace.

"Selling at 99 per cent discount we increase the traffic to our site," said Mirza. "Our platform has a target market which is always a click away for corporates which wish to reach out to a wider and diverse audience."

The first auction went live on February 22 and pulled in 50 users. The iPad on offer was sold for Dh30.25. This month will see the auction for the rental unit in the Burj Khalifa, while the promoter is hopeful of getting Ferrari in auction mode come April once enough bidders are brought on board.

Enough to signal a decent start, but would that make it sustainable in the longer term?

Objective

"Our realistic objective is to break even three months after the launch. By then, in terms of users and public awareness, we should aim to be the top-of-the-mind online media platform for buying, bidding, entertainment and networking."

The promoter did an initial run in Canada — where Mirza has an interest in the venture capital firm Real Ventures — and for the UAE version he preferred to go for a completely revised concept.

Time will tell how much traction it will have on the digital highway.