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Get your free copyVeg Box UK, based in Hove, signed up to a deal with Groupon which offered boxes of fruit and veg worth £45 for just £18.
700 people took up the offer, but because Groupon keeps half of the voucher price, Veg Box UK were unable to afford delivery costs and had to issue some customers with refunds.
Daniel Harris, a spokesman for Veg Box UK, said, “In hindsight, the buzz of the offer was great and amazing but the outcome hasn’t been great for us. The knock on effect from the sheer demand actually had an impact on our reputation as a business.
“I think these offers work for certain types of businesses. They work if you are a massive established company and you’ve got a lot of stock you need to get rid of.”
Tobias Tschoetch, managing director of Groupon, added, “We can give recommendations on capacity based on what the business tells us.
“Groupon is about helping small businesses grow, not stretching them beyond capacity. We succeed when they succeed. It’s not always easy to precisely predict demand, but if a partner feels they aren’t able to meet capacity, we work with them to revise the offer to a level they’re more comfortable with.”