Groupon, a shopping website that offers a daily deal on the best local goods, services and cultural events in more than 500 markets around the world, launched the Ann Arbor, Michigan. Ann Arbor deals were previously featured on Groupon as part of the Detroit market region.

“A cultural hub and home to the University of Michigan, Ann Arbor is an excellent match for the Groupon model,” says Rob Solomon, president and chief operating officer of Groupon. “Groupon will offer residents and students unbeatable deals on the best that Ann Arbor has to offer, while driving new customers to local merchants.”

Using the principles of collective buying, Groupon negotiates discounts with popular businesses. Groupon subscribers get free daily emails alerting them to the deals. The deals are activated only when a minimum number of people agree to buy, encouraging subscribers to share the promotion with family and friends. By guaranteeing a large number of new customers, Groupon has created a powerful new marketing vehicle for local merchants. This innovative approach to e-commerce has brought millions of dollars in new revenue to local businesses while saving nearly $2 billion for subscribers worldwide.

“Groupon brings buyers and sellers together in a fun and collaborative way,” Solomon says. “We offer the consumer a great deal they can’t get anywhere else and deliver the sales directly to the merchant.”

During its first week as its own market, Ann Arbor’s featured deals included film festival tickets, a wine tasting and Southwestern fare. Upcoming deals include a family fun center, hair salon services, and a local sports bar. Ann Arbor joins Detroit, Grand Rapids, Kalamazoo, and Lansing as Michigan’s fifth Groupon market, with statewide savings of more than $22 million to date.