Beyond Groupon

Recently, we covered the new collective buying coupon service Groupon. In the last few months, the “groupon market” has been flooded with newcomers trying to capitalize on company and customer enthusiasm. Since these services are locally-focused, each city has a slightly different set of collective coupon sites. Here in San Francisco, we have at least nine of the services including Groupon, HomeRun, BloomSpot, LivingSocial,, TownHog, Special Deals, Joffer, and Zozi. Predictably, this market expansion has created a new market: aggregation services. Yipit and LocalOfferLounge allow you to sign up for just one daily email containing all the local deals that pertain to your categorical interests (restaurants, yoga, spas, city tours, etc.).

It's unclear where all this is heading. To date, no one seems to have innovated on the original Groupon idea, however it is clear that there is great potential here. As others have shown, collective buying power can be used for a great deal of social good. Let's hope Capitalism 2.0 continues to take us in that direction.