Groupon Inc. (GRPN - Free Report) enhanced its marketplace platform with the recent distribution partnership agreement with GasBuddy.
Headquartered in Boston and founded in 2000, GasBuddyis a company that assists customers to pay for fuel at discounted prices.The company provides real-time fuel prices in greater than 150,000 gas station stores in the United States, Canada and Australia. GasBuddy’s business solutions suite offers retailers the finest opportunity to maintain station information, manage their brand, and satisfy customer’s needs.
Per the latest agreement, GasBuddy will utilize Groupon’s local food and drink merchants’ card-linked deals in order to help customers avail offers directly to a suitable payment card after they have enrolled in the GasBuddy app.
With the partnership, Groupon’s voucherless strategy intends to provide customers with enhanced experience and increased conversion across the United States. Both the companies look forward to work together over the long haul in order to capitalize on the market opportunities.
According to Groupon’s Chief Product Officer Sarah Butterfass, “Partnering with GasBuddy makes perfect sense for us given our shared value proposition of convenience and savings in your local community.”
The partnership between the two companies is expected to go live in the second half of 2019.
During the first quarter, Groupon upped voucherless inventory by greater than 20% sequentially. We believe that the partnership will bolster international traffic, which is expected to drive Groupon’s customer base and the top-line growth going forward.
Notably, the company, through its e-Commerce platform, offers numerous deals that can be accessed by users anywhere and at anytime. We believe that the company’s new card-linked platform that replaces the voucher system and makes discounting processes easy will be a tailwind in the long haul.
Further, the alliance is a win for both GasBuddy and Groupon by providing people with more savings and access to the food and drink, which enable itto cash in on the growing popularity of these services.
Groupon rides on solid partnerships across its marketplaces. The company’s partnership with Grubhub (GRUB - Free Report) continues to enable customers to order food delivery from more than 80,000 restaurant partners of Grubhub via Groupon platform.
Further, partnerships with CourseHorse, Viator, ParkWhiz, American Express, Major League Baseball, among others are aiding Groupon to cater to just about any local need, consequently aiding it with rapid penetration in the e-commerce market.
A proper mix of products and accelerating consumer driven initiatives are expected to benefit the company.
Zacks Rank & Key Picks
Groupon carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Match Group, Inc. (MTCH - Free Report) and Autohome Inc. (ATHM - Free Report) , both flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Match Group and Autohome have a long-term earnings growth rate of 15.2% and 20.9%, respectively.
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