Groupon is an e-commerce marketplace connecting subscribers with local merchants by offering activities, travel, goods, and services at discounted prices. It was founded in 2008 by Andrew Mason, Eric Lefkofsky, and Brad Keywell. Originally, Groupon's business model revolved around providing daily deals, where subscribers could purchase vouchers for various products and services at significantly reduced prices.
Here's how Groupon typically works:
1. **Daily Deals:** Groupon negotiates deals with local businesses, such as restaurants, spas, retailers, and more. These deals usually offer a substantial discount, often ranging from 50% to 90% off the regular price.
2. **Subscriber Base:** Groupon promotes these deals to its vast subscriber base via email newsletters and its website. Subscribers can also access deals through the Groupon mobile app.
3. **Purchase Vouchers:** Interested subscribers purchase vouchers for the deals they want directly from Groupon's platform. These vouchers can be redeemed at the respective businesses for the specified goods or services.
4. **Redemption:** Customers then visit the merchant's location and redeem their vouchers by presenting them at the point of sale. Merchants can verify and process the vouchers through the Groupon Merchant Center.
5. **Revenue Sharing:** Groupon typically takes a percentage of the revenue generated from each voucher sold, while the remaining portion goes to the participating merchant. This revenue-sharing model incentivizes merchants to offer attractive deals to Groupon's subscriber base.
6. **Expansion:** Over the years, Groupon has expanded its offerings beyond daily deals to include a wide range of products and services, such as travel packages, event tickets, electronics, home goods, and more.
7. **Global Presence:** Groupon operates in numerous countries around the world, catering to both local and international markets. Its global presence has made it one of the largest and most well-known deal-of-the-day websites.
Overall, Groupon has revolutionized the way consumers discover and access discounts for various goods and services, while also providing a platform for businesses to attract new customers and boost sales.
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