BuyWithMe

BuyWithMe
Type of site
 Electronic Commerce
Available in English
Owner Gilt Groupe
Website http://www.buywithme.com
Commercial Yes
Registration None
Launched May, 2009
Current status Defunct

BuyWithMe was a social e-commerce company that was known as the first competitor to group buying website Groupon. Launched in Boston and then later based in New York City, BuyWithMe allowed consumers to leverage group buying power to get discounts with local merchants online.

BuyWithMe launched in May 2009 and was acquired by Gilt Groupe in November 2011,[1] It was absorbed into Gilt Groupe's Gilt City daily deals division.[2]

Business model

In a similar manner to Groupon (except that their deals always lasted a week), BuyWithMe introduced at least one new deal everyday in each of the local markets it served. The deal was emailed to all local BuyWithMe subscribers, made available on the company's website, and distributed through a network of group buying media partnerships (including Boston.com, owned by The New York Times). The deal only completed if a minimum number of consumers signed up, therefore assuring the merchant a minimum return.[3]

BuyWithMe was funded with $36.5M by venture capital firms Matrix Partners, Bain Capital Ventures, and Pinnacle Ventures. BuyWithMe's first market was Boston, with San Diego and Washington, DC following.[4] By October 2009, BuyWithMe served nine markets and its major competitor was Groupon.[5] BuyWithMe had partners such as Foursquare.[6] In January, the company appointed Jim Crowley as CEO.[7] In June 2011, the company was pursuing a significant push into loyalty with an acquisition of a card-linked offer company.[8] The sale to Gilt Groupe came as Crowley struggled to raise venture capital.[9]

References

  1. ↑ Galen Moore, Boston Business Journal November 2, 2011 Gilt Groupe acquires BuyWithMe for undisclosed terms
  2. ↑ "Gilt City, A Subsidiary Of Gilt Groupe, Acquires Assets Of BuyWithMe.com". www.gilt.com. Retrieved 26 June 2015.
  3. ↑ Sam Oches, QSR Magazine August 6, 2009, Coupon Companies Ditch Standard Format with Internet's Help
  4. ↑ Buy with Me FOX 5 DC "Money Monday", July 6, 2009]
  5. ↑ Jenn Abelson, The Boston Globe June 14, 2009, Shoppers of the world, unite
  6. ↑ New partnership
  7. ↑ BuyWithMe CEO Jim Crowley
  8. ↑ BuyWithMe acquires loyalty program service
  9. ↑ BuyWithMe struggles as investors sour on Groupon clones 2011-10-25
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