Groupon Freebies Now on Apple's iOS-based Devices - Analyst Blog

Groupon ( GRPN ) recently launched Freebies on Apple 's ( AAPL ) iOS based devices. Launched in 2013, These include over 30,000 digital coupons, codes, sales, giveaways and samples from over 6,000 brands spanning 245,000 physical locations.

This addition makes Groupon the most widely distributed mobile coupon platform in the United States. The company plans to expand the offering to some key international markets in the second half of 2014.

The Freebies mobile platform has built-in short-messaging-service, Facebook ( FB ) and Twitter ( TWTR ) integration to enable consumers to easily share the best deals from their favorite brands with family and friends.

The addition of this feature on iOS will enable shoppers to save money as they no longer will have to clip the coupons. On the other hand, with more than 80 million downloads worldwide, the brands will also get an enormous platform to drive customers to their apps, online stores and so on.

This move of adding Freebies to mobile devices will make it possible for Groupon to offer location-based alerts about deals or coupons. This will enhance customer satisfaction, which in turn will drive growth.

The Freebies reflects Groupon's strategy of diversifying its business besides the core daily deals segment. However, the coupons will take some time to contribute meaningfully toward top-line growth. This is due to the fact that unlike daily-deals (revenue earned upfront), Groupon will earn revenues from coupons only if customers redeem them and purchase goods from the retailer.

In the recently concluded first quarter, 50.0% of its transactions in North America were through mobile devices. Moreover, more than 9.0 million people downloaded Groupon's mobile app during the quarter.

Although mobile presents ample growth opportunity, increasing competition from more established players such as eBay and remains a major concern. Google's decision to quit the coupon business called Zavers may also remain an overhang on the stock going forward.

Moreover, a volatile macro economic environment and continued investments to expand Groupon's merchant base are expected to impact near-term results.

Currently, Groupon carries a Zacks Rank #3 (Hold).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

APPLE INC (AAPL): Free Stock Analysis Report

GROUPON INC (GRPN): Free Stock Analysis Report

FACEBOOK INC-A (FB): Free Stock Analysis Report

TWITTER INC (TWTR): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More