Groupon: Collective Buying Power & Collaborative Consumption

In class, we recently just watched a TED Talk by Rachel Botsman.  TED Talks are conferences by innovative people pitching their innovative ideas.  Every time I watch one, I feel inspired to do something, to think a different way.  This particular TED Talk was about "The Case for Collaborative Consumption" and it was basically a simple idea of sharing our items with other people, being smart about the way we handle our most pack-rat possessions.  Rachel Botsman talked about how technology is enabling trust between two complete strangers.  There are several sites on the internet in which people can trade their own old DVD's that they don't use for a DVD that they want, with a stranger.  Instead of throwing it away, it is a lot better to share it.  

    "We've wired our world to share...and that's creating an economy of 'What's mine is yours.' "

Watch the TED Talk here.


There are several websites online that promote collaborative consumption.  One such website is called Groupon.  Groupon is a deal-of-the-day website that helps one find deals in his or her own city.  Groupon promises businesses a minimum number of customers and the site offers deals and discounts accordingly.  Basically there has to be a certain number of people who sign up per deal in order for that deal to go into effect.  One can use it as gifts and it is a great way to get deals.  Once at the store, one just shows the printed out coupon, or even more eco-friendly, just bring it up on their mobile device.  No more having coupon-cutting parties! (My mom loves cutting coupons and I would often help her).  Groupon was founded by Andrew Mason in November of 2008 in Chicago.  Groupon takes 50% of every deal and their revenue at the end of 2010 reached about $800 million.  They even turned down an acquisition by Google for $6 billion.  The Wall Street Journal stated that Groupon is

"projecting that the company is on pace to make $1 billion in sales faster than any other business, ever".

 That is really impressive.  There are over 35 million registered users on Groupon.  And with its 6 million deals already made, it doesn't seem to be slowing down any time soon.