Tuesday, December 28, 2010

Tech's Biggest Surprise of 2010: The Rise of Groupon

So, did you get a Groupon for Christmas? A spa visit or a dinner for two at the Pan Pacific?

It sure would feel great to have a gift like that under the tree and the best part is knowing your gift giver didn't pay full retail.

Not a Grouponian just yet? Let me fill you in:

In April, Groupon was worth $1 billion. By November, it was worth $6 billion. In other words, the group-buying website's average value is growing by more than $20 million in value per day. That makes it the fastest growing company in history.

Chew on that one.

Groupon now has more than 3,000 employees selling brands on the daily deal business model. And business is booming. Now the company is shooting for greatness after turning down Google's $6 billion offer. The eventual Groupon IPO will be the most anticipated public offering since Google (unless Facebook beats them to the punch).

Nobody could have predicted that Groupon and the group buying business model would explode like it did in 2010, not even Groupon's founders. Local business and advertising has been changed forever by the flood of daily deals that now permeate the web. And remember this: We have yet to see the limits of the Groupon phenomenon.