Groupon Inc (NASDAQ:GRPN) made headlines once again this Monday, with the announcement of its acquisition of Blink, a Spain-based last minute hotel booking app. Terms of the deal between Blink and Groupon Inc. (NASDAQ:GRPN) remain undisclosed. Working with over 2,000 hotels in eight European countries, the app passes on great discounts to customers, whilst helping partner hotels fill their empty rooms.
The acquisition of this app fits perfectly into Groupon Inc (NASDAQ:GRPN)’s market strategy, which relies heavily on travel offers, such as hotel deals and full-service tours. As Aaron Cooper, Groupon Getaways’ senior vice president, stated in a press release yesterday: “The combination of a fantastic mobile app, same-day inventory management for properties and a team that obsessed with mobile and last-minute travel will help us further expand our travel business as the go-to destination for great deals on great places to stay”.
Blink by Groupon
Operating separately, until fully integrated into Groupon Inc (NASDAQ:GRPN)’s Getaway travel business, Blink will be rebranded as “Blink by Groupon”. By acquiring this app, Groupon Inc (NASDAQ:GRPN) will be gaining a foothold in the mobile services industry and competing with other successful last-minute booking apps such as JustBook, HotelTonight and Hot Hotels. The last minute hotel bookings space has been heating up lately and eating into Groupon Inc (NASDAQ:GRPN)’s business. Blink on the other hand, was facing fierce competition, which made the sale convenient. Hence, it comes as no surprise that the firm’s stocks rose over 5% today, as shareholders are excited about the potential growth benefits Blink has to offer.
Reaching a 52-week-high of $11.43 a share, Groupon Inc (NASDAQ:GRPN) continues to be a stock to keep an eye on. Last week the firm had already made headlines, by announcing it would seek to consolidate a distribution network for its “goods” business. CEO Erik Lefkofsky, who has been in the job since February, is definitely shaking things up, much to the delight of shareholders. Groupon Inc (NASDAQ:GRPN) is not only expanding the range of products it offers, but also its delivery methods, putting forward a strategy that is bound to result in further growth.
Disclosure: Pablo Erbar holds no position in any stocks mentioned