Groupon, the popular US-based group buying site, has just launched in Buenos Aires.
Groupon is one of the hottest new startups in recent years and offers specials and discounts based on a certain number of people collectively buying the “deal of the day.”
Here’s how it works: each day Groupon offers one special local promotion. If a certain number of people sign up for the offer, then everyone gets the deal. If the minimum number of people is not met, no one gets the deal that day. Groupon makes money by getting a percentage from the retailers. The retailers make out because it brings business and not everyone will redeem the offer they purchased.
Here are some of the recent offers they have had for Buenos Aires since launching on June 24, 2010:
- Pay $50 and get $100 of food at Kansas restaurant
- Get a massage for two at Experiencia Nirvana for $100, a 50% discount
- Two golf classes at the Costanera Golf Driving Range for $1
- Pay $50 and get $100 of food at Donde restaurant on Gorritti
It’s a strong business model that has seen them generate significant revenue as well as venture capital in the US. The interesting thing for the Buenos Aires site will be the reluctance of many Argentines to shop with credit cards online. There is a very low percentage of e-commerce transactions across Argentina,with people preferring to pay in cash or at RapiPago. Still, if the offers are compelling enough, they may be able to entice people to buy online.
Sign up for their daily email and take advantage of some of these discounts now. I’m looking forward to seeing what else they will have.