How many users does Groupon have

Network economy

Groupon is one of the hottest startups on the internet right now. The bundling of purchasing power brings users high savings and Groupon a valuation of one billion euros. Now the German Samwer brothers are supposed to help export the Groupon model all over the world.

Buy cheaper together: The Dutch internet company Letsbuyit once had a spectacular failure with the idea of ​​bundling people's purchasing power on the internet. The model is now celebrating a brilliant resurrection. Groupon is the name of the American pioneer of the second generation who, of all things, got German help to conquer the world market. Groupon has taken over the German clone Citydeal for a mid double-digit million amount (paid in shares, however). What particularly impressed Groupon: In just six months, the Citydeal team, behind which the brothers Marc and Oliver Samwer are the driving forces, launched the model in 15 other countries. "The Samwers are the most impressive founders I've ever met," Andrew Mason (photo), Groupon founder, told FAZ.

Because Groupon has not yet set up a foreign branch office, the Samwers should now do the job. The contract between Groupon and Citydeal provides for Groupon sites to be launched in ten other countries before the competition comes into play. “We're starting soon in Latin America, first in Brazil,” said Mason. Mexico is next on the list. In order for the Citydeal team to drive the expansion with vigor, the contract contains an “earn-out” clause. Part of the purchase price will only be paid at a later point in time, depending on the success. This phase is planned for two years.

The deal brought the Samwers and the other investors (Holtzbrinck-Ventures, Otto-Gruppe / eVenture Capital Partners and the Scandinavian investor AV Kinnevik) shares in what is currently the hottest internet start-up. The entry of investors DST and Battery in April, who invested $ 135 million, valued Groupon at $ 1 billion - just 20 months after it was founded. There is no longer any danger of suffering the Letsbuyit fate: "Groupon has been profitable since June 2009," said Mason. Therefore there is no need to raise new capital. "There are also no plans for an IPO," said Mason. When choosing a suitable partner for the international expansion, the choice for Citydeal was probably made quickly. “We looked at Citydeal just like all the other Copycats from Groupon. The decisive factor was the quality of the team, which was way ahead of everyone else. They are not only the best in Germany, but are also represented in 15 other European countries. It was the best step for Groupon to establish a presence in Europe, ”said Mason.

A 4-course menu for 55 instead of 120 euros or three hours of karting for 39 instead of 78 euros: If only enough buyers come together, Groupon can save a good half together. For the providers of the vouchers, Groupon seems to be more than just a one-time promotion. “When I started, I also feared that the dealers would not be able to come back. But the opposite is the case. 97 percent of the dealers who joined two months ago are still active today, ”said Mason. “Our problem is different, especially in larger cities: we have a long waiting list. For example, in Chicago there are several hundred merchants waiting for a place on the Groupon site, ”said Mason.

While restaurants in Germany often try to fill their bars in this way, the range is wider in America. “Groupon works for the 'prevented champions' as well as for large companies. For example, we had memberships for a museum in Chicago on the side, 50 percent cheaper than normal. In its 100-year history, the museum has gained 80,000 members. A single day on Groupon brought 6,000 more members, ”said Mason. The largest group of users are women aged 21 to 35 who live in cities. Groupon has 7.5 million monthly visitors, including 6 million in the United States and 1.5 million in Europe. In America, the company is gaining a million new members in a month, according to Mason. However, since the market entry barriers are low and network effects are not relevant, there is still enough space for competitors such as Dailydeal. The company is smaller, but it is also growing rapidly. Dealers therefore have a choice.

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Keywords: Groupon
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Groupon: world market leader with German help

By Holger Schmidt

Groupon is one of the hottest startups on the internet right now. The bundling of purchasing power brings users high savings and Groupon a valuation of one billion euros. Now the German Samwer brothers are supposed to help export the Groupon model all over the world.

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