(Chicago, IL) — October 19, 2010. Governor Pat Quinn today announced a $3.5 million business investment package to create 250 new jobs at Chicago-based Groupon, Inc., the nation’s leading social shopping website, offering daily deals on local goods, services and cultural events.
“Groupon helps consumers throughout the world save money, while dramatically boosting local businesses,” said Quinn. “This investment package will help this fast-growing and cutting-edge company expand in Illinois, creating even more good jobs and great deals.”
The state’s $3.5 million business investment package will allow Groupon to hire 250 new employees at its headquarters in Chicago. Without this state support, the company would have utilized its offices in other states for its continued growth.
Groupon is one of the fastest growing companies in Illinois, increasing from seven employees in 2008 to more than 900 at its Chicago headquarters today. It has more than 2,500 employees worldwide.
“Groupon is happy to be able to continue attracting world-class talent in Chicago,” said Rob Solomon, President and Chief Operating Officer at Groupon. “We thank Governor Quinn and the state of Illinois for putting together an incentive package that allows us to further expand our workforce.”
The Illinois Department of Commerce and Economic Opportunity is administering the package. It includes Economic Development for a Growing Economy corporate tax income credits over the next 10 years based on job creation, and Employer Training Investment Program job training funds that will help enhance the skills of its workforce.
Groupon was founded in 2008 and offers daily deals at low prices by utilizing the power of group buying. The company offers daily “Groupons,” which are special deals that only become active if a pre-determined number of people sign up for them. If the minimum number of people do not sign up for a day’s deal, it does not take effect.
The innovative strategy reduces risk for retailers, who can treat the coupons as quantity discounts, as well as sales promotion tools. Groupon also features local charities and organizes support for community causes.
The home-grown success story is the product of founder Andrew Mason, a former graduate student at the University of Chicago, and Chicago-based investors and co-founders Eric Lefkofsky and Brad Keywell. Since its founding in 2008, the company has expanded dramatically from Chicago to Boston, New York City, San Francisco and other major markets throughout the United States and Canada.
The company now has more than 20 million subscribers in more than 300 markets in North America, Europe, Asia and South America.
Pingback: Startup Illinois: Questions Abound | TINC Magazine: Technology Industry News - Chicago - July 28, 2011