Skip to main content
  1. News
  2. Business & Finance
  3. Marketing & PR

Chicago's Groupon surpasses $1 billion mark

groupon_logoChicago-based Groupon allows people to further enjoy their community by providing daily deals with unbeatable prices; Groupon is able to offer unrivaled prices by guaranteeing retailers higher total sales. Plus, cost-conscious consumers that may not have been aware of a local business are encouraged by the savings to frequent businesses. Thus, overall awareness is increased, as is the opportunity for increased long-term sales. 

The "deal of the day" website heralds, "One ridiculously huge coupon each day, on the best things to eat, see, do and buy in Chicago." Groupon, started in Chicago in November 2008 as a platform for collective action; since their inception, the company's experienced tremendous growth, raising finances to expand into other markets backed by dollars gained from venture capitalists 

According to Mashable, a recent investment by Digital Sky Technologies and Battery Ventures - $135 million in new funding - has pushed Groupon's value above the $1 billion mark. Groupon, which is estimated to be generating over $1 million/week in pure profit already, will undoubtedly put the new funding to work by expanding. At the current time, Groupon is available in 26 cities. 

Groupon will soon become a household as they join an elite group on Web 2.0 sites that have surpassed the billion-dollar mark, joining the likes of social media sites Facebook and Twitter.

Comments

  • Fred 4 years ago

    Yes many companies have created billion dollar valuations and become household names...like Pets.com, drkoop.com, webvan, yadayada.com, flooz.com and many others. Groupon is great but they have nothing proprietary and their competitors are right on their heels. Most of all you have to understand that their customers and their merchants are not loyal...why would they be?

  • Jeff Louis 4 years ago

    True words, Fred. Pets.com is a great example, and you're right in saying that customers and merchants are fickle. Yet, if the estimate of $1 million a week in pure profit for Groupon is correct, merchants must be receiving some sort of ROI. The point I was making in the long-term is that in a market as diverse as Chicago, consumers may not be aware of their options. If local retailers are able to capitalize on "coupon day" by converting a few non-customers into customers, don't you think that in markets like Chicago that boast a myriad of local choices (who grow their business by word of mouth) that it would be worth it?

Advertisement