The Chicago Transit Authority announced Wednesday it will make $1.8 million in a first-of-its-kind deal to offer fare passes on Groupon, the Chicago-based daily deals website.
Groupon is paying the transit agency nearly $1.89 million, or $7.53 a piece, up-front for 250,000 3-Day passes, which it will sell for $9, the CTA said in a release.
The deal saves Groupon members $5 off the CTA's current $14 price tag for the passes, and could be offered as soon as the end of June, the release said. This is the first time the daily deals site has partnered with a transit agency to sell fares, according to the CTA.
"This innovative deal is exciting in many ways," Mayor Rahm Emanuel is quoted as saying in the release. "It will generate nearly $2 million of immediate additional revenue for CTA, it will introduce and attract new potential customers to CTA, and is an innovative example of the government and business community working together to benefit the entire city."
If the experiment is successful, the agreement allows Groupon and the CTA to offer another 250,000 passes for the same price within the next year, the release said.
"This is a great way to unite two highly visible and respected brands," said CTA President Forrest Claypool in the release. "This unique offer is an innovative way for the CTA to cultivate new, local customers and tourists in a way we've never done before. This is an innovative partnership, as this is the first time Groupon has partnered with a transit agency."
Transit officials hope the deal will entice new local riders and reach summer tourists, as well as provide an immediate influx of capital, the release said.
Groupon will advertise the deal on both the Chicago and travel deals sections of its website, the release said. The company will own the fare cards until users purchase them, and customer information gleaned during the offering could help the CTA further encourage ridership, the agency said.
Riders will still be able to purchase 3-Day passes at their normal price at current sales locations.
Monday, June 17 2013 2:23 PM EDT2013-06-17 18:23:45 GMT
Train service on the South Shore Line is suspended after a problem occurred with the equipment that transfers the energy from the overhead line to the trains.
Train service on the South Shore Line is suspended after a problem occurred with the equipment that transfers the energy from the overhead line to the trains.
Monday, June 17 2013 9:28 AM EDT2013-06-17 13:28:37 GMT
A fatal early morning crash involving three vehicles and a motorcycle shut down the eastbound lanes of Interstate 80/94 during the Monday morning rush hour, according to Indiana State Police.
A fatal early morning crash involving three vehicles and a motorcycle shut down the eastbound lanes of Interstate 80/94 during the Monday morning rush hour, according to Indiana State Police.
Saturday, June 15 2013 9:11 PM EDT2013-06-16 01:11:05 GMT
By all accounts 21-year-old Carissa Hinz was a young woman full of life. Many friends and co-workers were present when she was struck by a car and the driver kept going.
By all accounts 21-year-old Carissa Hinz was a young woman full of life. Many friends and co-workers were present when she was struck by a car and the driver kept going.
Saturday, June 15 2013 12:30 PM EDT2013-06-15 16:30:36 GMT
Bond has been set at $300,000 for a man charged with striking a 65-year-old woman and her grandson in a hit-and-run accident in the West Englewood neighborhood Monday evening.
Bond has been set at $300,000 for a man charged with striking a 65-year-old woman and her grandson in a hit-and-run accident in the West Englewood neighborhood Monday evening.
Saturday, June 15 2013 10:45 AM EDT2013-06-15 14:45:00 GMT
Multiple ambulances were called, in addition to other fire department equipment, to O'Hare International Airport Saturday morning after an incoming plane reported mechanical problems.
Multiple ambulances were called, in addition to other fire department equipment, to O'Hare International Airport Saturday morning after an incoming plane reported mechanical problems.
Friday, June 14 2013 1:47 PM EDT2013-06-14 17:47:11 GMT
Mayor Emanuel's office has some good weekend news, but there's a catch. Free Sunday parking begins this weekend in some neighborhoods, while paying hours are extended in others.
Mayor Emanuel's office has some good weekend news, but there's a catch. Free Sunday parking begins this weekend in some neighborhoods, while paying hours are extended in others.
Friday, June 14 2013 1:07 PM EDT2013-06-14 17:07:39 GMT
Chicago Bike Week ends with a bang on Friday, with the Bike to Work Rally in Daley Plaza. New barrier-protected bike lanes also opened along Milwaukee Avenue, the city's most heavily biked corridor.
Chicago Bike Week ends with a bang on Friday, with the Bike to Work Rally in Daley Plaza. New barrier-protected bike lanes also opened along Milwaukee Avenue, the city's most heavily biked corridor.
Thursday, June 13 2013 5:18 PM EDT2013-06-13 21:18:11 GMT
Service on Metra's Southwest Service between downtown and southwest suburban Manhattan has been disrupted Thursday afternoon by the derailment of a freight train locomotive on the South Side.
Service on Metra's Southwest Service between downtown and southwest suburban Manhattan has been disrupted Thursday afternoon by the derailment of a freight train locomotive on the South Side.
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