Cash Machine

How they do it: Groupon’s customers typically pay for a voucher or coupon upfront directly to Groupon. This voucher or coupon can then be used to get a product or service with the merchant. Upon delivering the service or product, the business gets paid by Groupon.

Leverage Customer Data

How they do it: By running a platform offering vouchers and coupons to products and services from 3rd party businesses, Groupon controls the marketing channel to the customer. It collects customer data and utilizes it to advertise new deals to customers. The value to its 3rd party businesses is a large existing base of customers interested in coupons, to which their service or product can be advertised.

Orchestrator

How they do it: Groupon solely focuses on providing the online platform, bringing new coupons to it and marketing to end customers. Everything related to order fulfillment, service or logistics is the responsibility of the respective 3rd party business offering their coupon on the Groupon website.

Revenue Sharing

How they do it: Groupon’s core offering is a website connecting customers with businesses offering a service at a discount (coupon). Groupon takes a fee from each transaction / coupon sold over their website after a minimum treshhold of sales is reached. The 3rd party business can profit from more customers and shares part of that revenue with Groupon.