Groupon Goes Upscale, Sets Sights on OpenTable
If its stock price is any indicator, Groupon is in the midst of a comeback. As the company climbs the ranks of Wall Street, it appears to be cozying up to more affluent consumers. On Monday, Groupon announced Groupon Reserve, “the premiere destination for the finest things to eat, see, do and buy.” This new platform uses the reservations engine that used to power Savored.com, which Groupon acquired back in September.
For now, Groupon Reserve allows customers to book tables at restaurants in 10 cities at discounts of up to 40 percent. “In the future, Reserve will also feature premium deals and experiences from top beauty, product, travel and entertainment brands, as well as similar reservations capabilities for spas, salons and hotels,” the company notes in its press release.
Groupon Reserve gives customers a discount off their check without pre-payment or vouches. The company also touts Reserve’s value for restaurants, which can leverage the platform to fill seats during slow periods.
The new offering is live in 10 markets: Atlanta; Boston; Chicago; Denver; Los Angeles; Miami; New York City; Philadelphia; San Francisco; and Washington, D.C. Groupon has plans to expand Reserve to more U.S. and international cities by the end of the year.
Groupon Reserve is a not-so-veiled shot at OpenTable, which isn’t much of a surprise. But the company should take note of LivingSocial Room Service, its main rival’s attempt to get into the fine-dining market in 2011. While Room Service and Reserve are certainly different, it remains to be seen if a daily-deals company can successfully take hold of higher-end markets.
