Though Groupon has posted a loss in the latest quarter, its CEO Andrew Mason is still upbeat about the model used. Mason was speaking at the 2012 Goldman Sachs Technology and Internet Conference. He conceded that Groupon has had a tough time around its IPO filing, but that it has now become better.
Mason said very firmly, “We have cracked the code.” He pointed out that Groupon has become the fastest growing company in the three years since it was started. Mason also said that many of the start-ups would be unable to succeed as scaling up was an expensive proposition. Groupon continues to innovate in the daily deals space. It has gone from offering a deal a day to multiple deals in 47 countries. It has also introduced instant deals.
Mason said that though the online and local space for daily deals existed, it was the mobile space that would grow. “It doesn’t really work if you want to sit down in front of a desktop every time you want to buy something from a local merchant,” Mason asserted.
Groupon has now started ensuring that shopping apps for mobiles are preloaded in Smartphones. This will facilitate purchases as well as tracking of redemption. Mason expects these moves to continue to keep Groupon in the lead position.