Groupenomics: Getting schooled on the daily deal craze

They’ve got an offer you can’t refuse.

Yes, the so-called ‘group buying’ or ‘social buying’ craze spearheaded by websites like Groupon and LivingSocial has made its way to Charlottesville. While local consumers might have reason to rejoice about saving 50 to 90 percent on local purchases, and while some local businesses are embracing the concept, others are bracing themselves for a daily deal invasion.

In case you haven’t heard, Chicago-based Groupon and Washington, D.C.-based LivingSocial have been busy taking over the world lately. Last month, Groupon, which claims to have 50 million subscribers and yearly revenue around $500 million, walked away from a rumored $5 to $6 billion takeover bid from Google. And Amazon.com recently invested $175 million in LivingSocial, which claims it hauls in an average of $1 million a day. Even though we’re in the midst of a recession, or supposedly recovering from one, Forbes has called Groupon the “fastest growing company in history.”

Indeed, the recession may have even fueled the growth of the two READ MORE

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