GroupOn's Business Model

Groupon operates as a marketplace connecting consumers with local businesses. It offers discounts on experiences like dining, travel, and services, allowing users to purchase vouchers for these deals at a reduced price. Groupon partners with businesses to help them attract new customers, who redeem the vouchers. Groupon keeps a percentage of the sale while providing marketing exposure to enterprises. The model benefits consumers with savings, businesses with increased foot traffic, and Groupon with revenue from transactions, creating a win-win situation for all parties involved.