The Business Model of Groupon
Groupon offers consumers discounted gift certificates (coupons) usable for local businesses e.g., restraurants, or online shops. Upon subscription on its website or its mobile application available on iPhone, Android, Blackberry and Windows Phone, users receive notifications of the latest deals based on their preferences. By buying deals on their phones, users can redeem them using the screen as a coupon to be scanned. Merchants offering their products or services must provide discounts of 50% or more compared to the regular price. As of March 2015, Groupon served more than 500 markets, had nearly 48.1 million active customers, and featured more than 425,000 active deals worldwide.