Groupon, the daily deals website, is getting advice from the European business it purchased last year—Citydeal—in order to stimulate growth. Before a public listing, the company is hoping to increase domestic growth.
Groupon has made Christopher Muhr, managing director of Groupon UK in London, its new sales chief at the company’s Chicago head office. Muhr is taking over from Darren Schwartz. Additional international members will include Rajen Ruparell, Emanuel Stehle, and Jens Hutzschenreuter, all co-founders of Citydeal.
Success of the International Team
The German company was purchased by Groupon last year in order to begin its international work. The appointments, which have not been confirmed by Groupon, are expected to help domestic sales increase, as the international team brought in has boosted growth in overseas sales.
The online deal company saw nearly double the amount of subscriptions this year, up to 115 million. Despite this, growth has recently been a bit slower than anticipated, with 36% growth in the second quarter, just over half the 63% boost shown in the first quarter.
In North American, average income per subscriber was $8.57, a 12% drop. This information comes from Yipit, a company that tracks the daily deal industry. The international team has brought more success to the European market, and so is potentially being transferred to the US in order to help stimulate growth there.
A Good Time for Groupon
Groupon was founded in 2008 by Andrew Mason, a music major at Northwestern University. The company has filed to raise as much as $750 million in an IPO, and is anticipated to be one of the most high-profile new listings this year.
Other daily deal sites, such as Living Social and VoucherCodes.com, have sprung up alongside the major company, albeit behind the success of Groupon. Since the company started in 2008, it has seen huge profits, as it began “giving” out deals at a time of economic recession.
Times are still uncertain, and people still enjoy indulging themselves, which they are able to do more easily with the daily deal site. Profit for the company is to be expected, and even though growth is slowing down, it is still present at a higher rate than the economy in general.