How Groupon Is Helping to Save Gas Money Over the Summer
Groupon Inc. (NASDAQ: GPRN) shares made a handy gain in Wednesday’s session after the firm announced a U.S. distribution partnership with GasBuddy, the company that helps consumers avoid paying full price for fuel. Note that this partnership is expected to go live in the second half of the year.
Under the terms of the deal, Groupon will provide GasBuddy with local food and drink merchants’ card-linked offers content. Consumers will be able to load offers directly to an eligible payment card after an easy opt-in enrollment in the GasBuddy app.
Once customers visit businesses with these offers and pay with their enrolled card, they’ll receive GasBuddy GasBack redeemable for free gas at 95% of gas stations across the United States through the Pay with GasBuddy program.
Card-linked offers are an important part of Groupon’s voucherless strategy, which is aimed at enhancing the customer experience and increasing conversion. During the first quarter, Groupon increased voucherless inventory by more than 20% quarter over quarter, as more and more of its business became card-linked, bookable or ticketed.
Sarah Butterfass, Groupon’s chief product officer, commented:
Partnering with GasBuddy makes perfect sense for us given our shared value proposition of convenience and savings in your local community. Nearly 20% of all U.S. internet users come to Groupon every month. While that’s an impressive number, we also recognize our potential as a distribution platform as well as the value of connecting with consumers outside of our ecosystem.
Sarah McCrary, CEO of GasBuddy, commented:
GasBuddy’s goal is to give away more free gas in the United States and Canada than any other company. Consumers value gasoline as a currency more than cash itself, and by adding local restaurants, coffee shops and other food and drink businesses, GasBuddy is giving consumers more ways to earn GasBack than anyone else.
Shares of Groupon were last seen up about 2.3% at $3.73, in a 52-week range of $2.80 to $5.52. The consensus price target is $4.07.