Restaurant reservation feature will allow users to book tables in more than 500 upscale restaurants in 10 cities around the U.S. including New York, Boston, Los Angeles and San Francisco at a discount of upto 40%.
The feature will be a part of Groupon Reserve section which takes care of promotions for luxury dining, activities and goods. It allows consumers to use website or mobile app to search and discover great businesses at unbeatable prices.
The new service is based on a startup called Savored that Groupon acquired last year, Savoured helps users to find restaurants in places they want. It had partnered with more than 1,000 upscale restaurants and provides discounts if reservations are made online in advance.
The restaurants which Savored had worked with will now be a part of Groupon Reserve. With this new initiative Groupon expects to drive more traffic to restaurants on [Groupon’s] platform.
Benjamin McKean, founder of Savored and GM of Groupon Reserve, emphasized that the new feature will help Groupon transition from daily deals to the broader “online deals” market.
Groupon had reported USD 638.8 million in revenue for its Quarter 4 for 2012, with operating loss of USD 12.9 million. Groupon also removed Andrew Mason from the leadership position. For Quarter 1 earning for 2013, it has clocked USD 601.4 million in revenues.
To boost its revenue, Groupon needed some transition from just being a deal site, as adding up, restaurant reservation may help the company to recover the revenue loss.
Groupon last year also started with Groupon Payments, to add on an alternate revenue channel by a payment gateway for small business transactions.