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Groupon Scheduler Rolls Out in Beta as Part of Larger Tech Ambitions

Groupon doesn't want to be known as just a deals company.  —  As many others have proven (Google, Amazon, LivingSocial, etc.), that business is easy to replicate.  Instead, the Chicago-based company wants to be known as a technology company for local merchants.

AllThingsD Tricia Duryee

Context & Ripple Effects

This beta launch is the next step in an arc Groupon has been tracing since at least October 2010, when it argued its future lay in self-serve merchant tools rather than curated deal inventory. By September 2011 the company had closed the redemption loop with loyalty rewards, moving from one-off promotions toward recurring software relationships with the same businesses.

The strategic logic is explicit in Groupon's own framing: the deals business is easy to replicate — a point underscored by the wave of struggling clones reported in August 2011 as ripe acquisition targets, and by Google's own entry into local deals after its acquisition approach failed. Scheduler is pitched as the differentiator that replication can't easily touch.

First-order effects

  • Local merchants using Groupon gain a booking and appointment tool layered on top of deal distribution, deepening Groupon's footprint inside day-to-day store operations rather than just campaign windows.

Second-order effects

  • LivingSocial and other daily-deal rivals face pressure to match merchant-software features, since Groupon is explicitly arguing that deal inventory alone is a commoditized product any player — Google, Amazon included — can copy.

Third-order effects

  • If the pattern holds, local-commerce competition shifts from who has the best deal inventory to who owns the merchant's operating workflow — scheduling, redemption, loyalty — making switching costs, not subscriber reach, the durable moat.

The trend: Daily-deal companies are repositioning themselves as merchant-software platforms, betting that workflow tools will prove harder to replicate than the discounted-inventory business they were built on.