Feeds

Groupon CEO plans to 'reinvent local commerce ecosystem'

Moving beyond digital coupon clipping

Build a business case: developing custom apps

In an open letter to shareholders Groupon CEO Andrew Mason has outlined plans to take the firm into local ecommerce services with a series of products designed to expand beyond its core business.

"Groupon is setting out to reinvent the multi-trillion-dollar local commerce ecosystem. We are building an integrated suite of tools and services that we believe will profoundly change the way we shop locally," he wrote. "Today, Groupon is a marketing tool that connects consumers and merchants. Tomorrow, we aim to move upstream and serve as the entry point for local transactions."

Groupon wants to become the operating system for ecommerce he said, and would be relying on technology currently under development to do it. The company's SmartDeals software, which does a better job of targeting ads, was showing a 50 per cent improvement in sales during limited trials and would be rolled out to all customers this year to bolster the existing customer base, and there'll be a greater emphasis on mobile offers.

A Rewards scheme is being also trialed to give extra benefits for frequent buyers from the same merchants, and Groupon is also providing payment analytics software to vendors for its back-end, and in the pilot scheme 30 per cent of sellers have opted into this. Groupon is also trialing a bookings management system, dubbed Scheduler, and plans to offer more business analytics and processing software in the future.

Further products and services will be announced over the next couple of quarters he said, and they would increase the value of Groupon as the company changed. He urged shareholders to stick with the company as it grew, saying that the company was focused on long-term potential.

Mason has reason to be concerned. Groupon shares are close to half their value just six months ago and the company faces regulatory probes from the SEC and a shareholder legal case over its misstatement of its fourth quarter results. The UK's Office of Fair Trading is also investigating the company over poor advertising practice. ®

Boost IT visibility and business value

More from The Register

next story
The Return of BSOD: Does ANYONE trust Microsoft patches?
Sysadmins, you're either fighting fires or seen as incompetents now
Microsoft: Azure isn't ready for biz-critical apps … yet
Microsoft will move its own IT to the cloud to avoid $200m server bill
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
Cutting cancer rates: Data, models and a happy ending?
How surgery might be making cancer prognoses worse
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?