Rove, founded by a 22-year-old, is helping Gen Z earn airline miles without credit cards

Max Morganroth traveled to 30 countries during his junior year study abroad, primarily flying in business and first class, funded by airline points collected through strategic credit card applications and miles redemptions.

Morganroth discovered in Hong Kong that people can earn miles on Cathay Pacific’s Asia Miles program without opening credit cards. Miles are treated as a second currency, earned through everyday transactions like buying a water bottle at 7-Eleven or opening a bank account.

Seeing an opportunity to create a universal mile loyalty program, Morganroth teamed up with Arhan Chhabra to found Rove. The startup aims to allow consumers to earn miles on various airlines by shopping at specific stores, targeting a demographic like Gen Z that is eager to travel but lacks established credit.

Rove joined Y Combinator’s winter 2024 batch and secured partnership deals with 11 airlines’ mile programs, raising $2 million from investors like YC, General Catalyst, and Soma Capital. The loyalty program aims to expand the reach of airline miles to more consumers.

Instead of sharing fees with credit cards, Rove enables airlines to profit through affiliate marketing with over 7,000 merchants via the Rove shopping extension for Google Chrome. Points earned from shopping can be converted into airline miles, offering more value than cash equivalents.

Rove also rewards users with miles for hotel bookings, with potential for significant conversion value. Users can combine miles earned from hotel bookings, shopping extension, and credit card points for maximum benefits.

The startup simplifies the process of earning and using miles, providing a user-friendly travel portal to find the best award flight deals. Despite partnering with 11 airlines, users can book award travel on approximately 140 carriers by transferring miles between affiliated airlines.

While Rove is accessible to all users, it aims to cater specifically to young adults who are passionate about travel but lack access to traditional credit card rewards programs.

Morganroth believes that Rove’s offering is particularly appealing to Gen Z, providing an easy entry point to the world of travel rewards without the usual barriers of credit history and high fees.