Groupon Inc offered its first car coupon on Tuesday, a sign the largest online daily deal company is expanding into bigger-ticket items.
Groupon offered a $199 deal good for $500 off the purchase or lease of a new or pre-owned vehicle at LaFontaine Auto dealership in Detroit.
Groupon, with more than 80 million members, usually offers discounts on smaller items, such as restaurants and spa visits. The company typically takes 50 percent of revenue generated by deals. Branching out into bigger purchases means that 50 percent cut will be bigger in dollar terms.
"The prospect of opening up markets like new cars and leases is attractive," said Ben Edelman, an associate professor at Harvard Business School who has been critical of Groupon. "To the extent they can still take 50 percent revenue share that's more money."
Is this the future of car deals?
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