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Groupon’s Worldwide Odyssey Takes It To Russia Via Social Network

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Groupon, which is in the middle of an internationalisation phase, is going in to Russia in partnership with one of its main social networks.

Odnoklassniki (Classmates) is operated by Group, which last year put a $135 million investment in to Groupon.

Unlike with Groupon’s usual, email-delivered offers, the pair are making a new “joint service” by which Odnoklassniki users can buy coupon deals “without leaving the social network website”. In other words, it’s a win for Odnoklassniki. rather humbly proclaims: “The joint service is the first project of its kind worldwide: no other social network has ever before realized incentives of this scale in the field of social commerce.” The other big social-coupons fusion, Facebook’s Deals, has only recently got going.

Flush with investor cash and growing revenue of its own, Groupon is doing overseas growth that has taken it to 35 countries. Last month, it acquired its way in to India, Israel and South Africa. This week, it opened up in Australia, albeit under the name “Stardeals” since it failed to get ownership of the domain.

Now it’s looking to appoint an international general manager, an executive search which Bloomberg says has knocked on doors including that of Hulu CEO Jason Kilar.

2 Responses to “Groupon’s Worldwide Odyssey Takes It To Russia Via Social Network”

  1. Julian, the Russian social network has been wildly profitable years before Facebook even came close to being cash flow positive. In addition to getting revenues from advertising, they charge their users for a wide variety of premium services, collecting payments via premium text messages – a practice they adopted from early social networking monetization successes of and social networks in the Baltics.

  2. Julian Moretti

    This is a much bigger deal for the social network than it is for Groupon since, as it is, the daily deals company is already extremely profitable while Facebook-like social networks are not. They have great potential, that’s true, but it doesn’t mean they are already making money. This blog makes a lot of sense about that