MyCityDeal
Encyclopedia
Groupon MyCityDeal is a collective buying power
, deal-of-the-day website that is focused on bringing discounted price deals in the lifestyle and leisure sector to UK and European markets. Originally founded in Berlin
as CityDeal in December 2009, the collective now serves Germany
, France
, Spain
, Sweden
, Austria
, the Netherlands, United Kingdom
, Italy
, Ireland
and Turkey
. The service was acquired in May 2010 by Groupon
, an operator of a similar service in the United States, and was subsequently co-branded under the Groupon name. The acquisition increased Groupon's operations in European markets.
of group purchasing power based on a growing number of active participants.
'MyCityDeal uses an assurance contract platform to ensure that retailers are able to offer quantity discounts through a viable sales platform. In doing so, users or consumers are protected from the free rider problem
where individuals looking for a "free ride" ride the discounted savings of others who paid to bring the deal-of-the-day to the actualization threshold. Rather, users are only charged when the required number of people sign up.
In China
, the model emerged as Tuangou
, a system that allows individuals to connect on-line, then approach local vendors to negotiate a discount.
The concept has received criticism in the US after a fraudulent photography deal had to be withdrawn from the Groupon
Atlanta website.
Collective buying power
Collective buying power is when a group of consumers come together and use the old rule of thumb, there's power in numbers, to leverage the group size in exchange for discounts.- In the marketplace :...
, deal-of-the-day website that is focused on bringing discounted price deals in the lifestyle and leisure sector to UK and European markets. Originally founded in Berlin
Berlin
Berlin is the capital city of Germany and is one of the 16 states of Germany. With a population of 3.45 million people, Berlin is Germany's largest city. It is the second most populous city proper and the seventh most populous urban area in the European Union...
as CityDeal in December 2009, the collective now serves Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
, Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
, the Netherlands, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
and Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
. The service was acquired in May 2010 by Groupon
Groupon
Groupon is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Groupon was launched in November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto...
, an operator of a similar service in the United States, and was subsequently co-branded under the Groupon name. The acquisition increased Groupon's operations in European markets.
Collective buying business model
Collective buying allows for direct cost savings, both for the consumer as well as the business. Consumers participating in on-line buying reap the benefits of discounted prices for restaurants, spas, attractions, hotels, etc., while organizations can save money by directly reaching target markets. Participating members further benefit through "networking opportunities and shared knowledge" which over time can build a tipping pointTipping point
In sociology, a tipping point is the event of a previously rare phenomenon becoming rapidly and dramatically more common. The phrase was coined in its sociological use by Morton Grodzins, by analogy with the fact in physics that adding a small amount of weight to a balanced object can cause it to...
of group purchasing power based on a growing number of active participants.
'MyCityDeal uses an assurance contract platform to ensure that retailers are able to offer quantity discounts through a viable sales platform. In doing so, users or consumers are protected from the free rider problem
Free rider problem
In economics, collective bargaining, psychology, and political science, a free rider is someone who consumes a resource without paying for it, or pays less than the full cost. The free rider problem is the question of how to limit free riding...
where individuals looking for a "free ride" ride the discounted savings of others who paid to bring the deal-of-the-day to the actualization threshold. Rather, users are only charged when the required number of people sign up.
In China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, the model emerged as Tuangou
Tuangou
Tuángòu , which loosely translates as team buying or group buying , is a recently developed shopping strategy originating in the People's Republic of China...
, a system that allows individuals to connect on-line, then approach local vendors to negotiate a discount.
The concept has received criticism in the US after a fraudulent photography deal had to be withdrawn from the Groupon
Groupon
Groupon is a deal-of-the-day website that features discounted gift certificates usable at local or national companies. Groupon was launched in November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto...
Atlanta website.