Groupon, the wildly popular e-commerce website that offers deep discounts on “the best stuff to eat, see and buy,” is launching its deal-of-the-day service in Puerto Rico May 9th, News is my Business learned.
The group’s promise is to publish an “unbeatable daily offer,” including discounts on everything from shoes to restaurants, that consumers can take advantage of. Groupon negotiates huge discounts, usually 50 percent to 90 percent off, with businesses and sends the deals to thousands of subscribers daily via email. That, in turn, generates volume for the participating business.
CEO and Pittsburgh native Andrew Mason is responsible for Groupon, a mash-up of the term “group coupon,” which now features a daily deal in more than 500 markets around the world. If a certain number of people sign up for the offer then the deal becomes available to all.
“Groupon uses collective buying power to offer unbeatable prices and provide a win-win for businesses and consumers, delivering more than 900 daily deals globally,” as per the company’s own description.
Groupon makes money by keeping approximately half the money the customer pays for the coupon. So, for example, a consumer could purchase an $80 massage for $40 and then Groupon and the retailer would split the $40. That is, the retailer gives a massage valued at $80 and gets approximately $20 from Groupon for it. Last year, the company made about $760 million in revenue.
On its website, Groupon notes it has helped consumers save nearly $1.8 billion through nearly 43 million coupons since its 2008 launch.
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