Using the principles of collective buying, Groupon negotiates discounts with popular businesses. Groupon subscribers get free daily emails alerting them to the deals. The deals are activated only when a minimum number of people agree to buy, encouraging subscribers to share the promotion with family and friends.
By guaranteeing a large number of new customers, Groupon has created a powerful new marketing vehicle for local merchants. This innovative approach to e-commerce has brought millions of dollars in new revenue to local businesses while saving approximately $400 million for millions of subscribers in North America.
Launched in November 2008, Groupon pioneered a new form of collective buying and sparked the social commerce phenomenon. Since then the site has expanded to 29 countries and more than 13 million subscribers. Groupon employs more than 1,200 people worldwide.
Look out for Techvibes interview with Groupon CEO Andrew from the GROW Conference here soon.