Feeds

Groupon CEO plans to 'reinvent local commerce ecosystem'

Moving beyond digital coupon clipping

Internet Security Threat Report 2014

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. ®

Intelligent flash storage arrays

More from The Register

next story
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.