Published: 9 years ago

Where is Groupon going?

Andrew Mason, Groupon’s CEO, recently announced deals personalization, a feature initially available in six cities: Chicago, Los Angeles, New York City, San Francisco, San Jose, and Seattle. This move by Groupon was done for several reasons, such as the necessity to differentiate itself from several clones (which are sprouting at the same rate of Groupon’s deals, daily) and an large amount of requests from businesses to be featured on the site. Deals personalization definitely made sense to me, so much so that the announcement was made just few hours before the soft launch of one of my projects, How many times have you looked at your inbox and thought, “why am I getting e-mails for pole dancing classes and spa deals?” This is exactly why Groupon is adding some level of personalization. With Wish A Deal I go even a step further by letting you pick the category of the deals you’d like to receive, and gather them from several daily deal sites in a single e-mail.

But where is this daily deals market going? My guess: now that the market is saturated by a leader, Groupon, and multiple clones, the next natural step will be to focus on verticals. Woot spun off Wine Woot, Shirt Woot, and so on. This would be a great time to launch sites such as Daily Burger Deal or Vegan Daily Offer. At this point, people are familiar with the concept of daily deals and would definitely appreciate a really specialized and targeted service. And, I’m willing to bet that this is something that sites like Groupon and Living Social will offer in the near future.

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