The Rise of Groupon

On the days leading up to its recently-filed (and soon-to-be heavily oversubscribed) IPO, Groupon's success since its 2008 origins has been on my mind. To me, it is clear that the ingenious start-up thrives on simplicity--at least on the surface. Of course, hard work and exhaustive marketing campaigns have had an incredible impact on the attraction of subscribers. Nevertheless, CEO Andrew Mason (Mt. Lebanon, PA native and Northwestern graduate) has designed a service that cuts right to the point: savings. Upon entering in the URL, signing in, and choosing the relevant location, users are greeted with the "featured deal" of the day, with the option to view all other deals in the vicinity. Clearly Groupon's partnerships with flagship brands such as Old Navy and Crate and Barrel help attract the frugal consumer, but, perhaps more unique is the start-up's relationships with local businesses, many of which lack a web presence. Such a local flavor adds a sense of discovery to the coupon service; I personally have learned of fantastic local establishments via their deals posted on Groupon. I can only hope that the planned $750mm IPO (led by MS, GS, and CS) will provide more than an artificial, ballooning valuation.