Groupon Launches Service Akin to OpenTable (GRPN)

Well, basically.

On Monday, Groupon GRPN announced that it was launching a restaurant reservation service similar to that of OpenTable OPEN that could steal market share from the online booking company.

Reservations Powered By Savored.com

Groupon has initially partnered to provide reservation booking abilities with Savored.com in a new product called Groupon Reserve. The partnership hopes to "feature premium deals and experiences from top beauty, product, travel and entertainment brands, as well as similar reservations capabilities for spas, salons and hotels."

“Groupon Reserve is an important step in our journey to become the leading marketplace for online deals, where consumers can come to Groupon and discover great businesses at unbeatable prices, “ said Groupon CEO Eric Lefkofsky. “As Groupon has evolved, we've seen growing demand from our customers for upscale offers and exclusive experiences. Reserve gives the most prestigious brands a new way to reach our large and desirable audience.”

Related: This Apple Store Employee Left His Job for Microsoft.

Flexible Pricing

A key feature of the new Groupon Reserve is for restaurants to give flexible pricing options for consumers based on seasonality without having to accept pre-payment risk, as in the traditional Groupon model. "“Whether it's because of a slow night or a last minute no-show, even the best restaurants have empty tables,” Lefkofsky said. “Reserve provides these businesses with a yield management solution to bring customers through their doors at the times they need them the most.”

Currently, the system is live in ten markets with more to come. Users in Atlanta, Boston, Chicago, Denver, Los Angeles, Miami, New York City, Philadelphia, San Francisco and Washington, D.C. can use the platform now with plans to expand both across the U.S. and internationally by the end of 2013 already in place.

By not taking prepayments, the service reduces the risk of refunds and not having maximized table yields due to last minute cancellations. Now, the system only accepts payment on the date of service, acting more as a coupon service that allows users to make reservations than the traditional Groupon model of paying up front.

Savored, acquired by Groupon in September 2012, pioneered the concept of yield management in fine dining establishments. The Reserve reservations team is led by Savored founder Ben McKean and based in Groupon's New York offices.

Shares Rise Modestly

Groupon shares rose in mid-afternoon Monday trade on the news as the new business line could represent a peak at the future of Groupon and markets priced in this new-look Groupon. Shares rose 0.82 percent to $8.62 on the news, well off of the 52-week low of a mere $2.60 per share.

OpenTable shares, meanwhile, rose a mere 0.16 percent to $64.05 Monday after opening sharply lower on the news.