We’ve seen a few “group purchase” websites spring up (and disappear) over the last few months, and this must give them some incentive to keep working: US group purchase site Groupon has just been valued at $1billion.
Whilst the UK market isn’t likely to be as lucrative, Groupon shows that the group buying model can work.
It joins social networks Facebook and Twitter and online gaming company Zynga in a very small club of web 2.0 startups that have crossed the $1 billion threshold… It has become profitable by taking a cut from each business that offers goods or services on the site.
However, the current UK Groupon-clones will of course be keeping an eye on Groupon’s own impending launch in London.
- iZettle Celebrates 5th Birthday, Drops Transaction Fees (June 8, 2016)
- Infographic: Mobile Wallets Compared (August 19, 2015)
- Zeek Review: Buy & Sell Discount Vouchers & Gift Cards (September 29, 2016)
- £5.7billion: Amount Britons Spent On Unused Tech in 2015 (February 24, 2016)
- Price Tracking Site Launch: Be Notified When Price Drops (February 4, 2016)