The company, when it was launched 2008, was the first real daily deal Internet company. It quickly moved into cities all over the world and became an Internet darling. However, one of its faults was the ease by which other company’s popped-up and began offering the same thing. I worked for one similar company, Beeconomic.com, a Singapore-based daily deals company, that did the same as Groupon Inc (NASDAQ:GRPN) with my pithy copy until Groupon was forced to purchase it in order to break into Singapore market.
(FULL DISCLOSURE: I no longer hold any shares in the company having sold my position in the low $20s.)
Failure to impress The Street
Suffice is to say that was well played in the $20s as the company is trading around $6.55 today.
Groupon Inc (NASDAQ:GRPN) has tried a number of things in order to regain investor’s confidence and find new revenue streams but has largely fallen short which is quite clear when you look at its stock price.
Thursday, Groupon unveiled a stand-alone app for Android and iOS that will allow customers to earn cash back if they purchase specific items at the grocery store. Rather than clipping coupons like my mother in the 70’s, users simply upload photos or their receipts following a trip to the grocery story. Certain brands that Groupon has deals with are the bulk of the offerings that earn cash back but additionally thinks like “milk” or “bread” give users brand flexibility.
Acquisition of SnapSaves and sweepstakes
The app is clearly a result of Groupon Inc (NASDAQ:GRPN)’s acquisition of SnapSaves, a Canadian startup that it purchased earlier this year.
Once a user accrues $20 or more in savings they can request a physical check that Groupon will send via the United States Postal Service.
To accompany the announcement, Groupon is also running a sweepstakes for users who download and use the app before Nov. 11 in order to have your name entered. The grand prize winner will receive a check for $13,000 a number that Groupon says the average family of four spends on groceries each year. There are also smaller prizes to be won.