GROUPON, INC

Groupon is a Chicago-based e-commerce marketplace which serves the purpose of connecting different subscribers with local merchants who offer not only activities, but travel, goods, and services in a total of 15 different countries.

Groupon, a fairly young company, has a history that that can be traced back to 2008 when it launched in Chicago, followed by launches in New York and Toronto soon after.

The idea of Groupon was born when its founder, Andrew Mason, experienced frustration with cancelling a cell phone contract in 2006.

This sparked Mason’s belief that there had to be a way in which a large amount of customers’ bargaining power can be leveraged.

In 2007, Mason launched a web platform which was based on the ‘tipping point’ principle which had the ability to make use of social media to encourage consumers to stand together in accomplishing a common goal.

The web platform was known as ‘The Point’ and it led to the birth of Groupon in November 2008 and it is a combination of the word ‘group’ and ‘coupon’. The first deal made on Groupon was an offer at Motel Bar in Chicago for two-pizzas-for-the-price-of-one.

After a mere 16 months in business, Groupon was valued at over $1 billion and it was the fastest American company that had ever achieved this milestone.

In mid-June 2011, Groupon filed to go public and it was successfully achieved by November 2011 under the ticker symbol GRPN.

Obtiva was acquired by Groupon in 2011 followed by Mertado, Breadcrumb and several restaurant reservations in 2012.

In early 2013, Glassman, which is a real-time location sharing mobile app, was acquired by Groupon followed by the last-minute travel app Blink later in the same year.

Ideeli, a fashion company, was bought over by Groupon in 2014 and during the same year the mobile app Snap was launched, providing customers with cashbacks should they purchase certain items from the grocery store.

These cashbacks are obtained by customers when they take a photo of their supermarket receipts and upload it onto Snap, provided that they purchased items listed as eligible for discounts.

Just before Groupon’s fifth anniversary, the website redesigned with new features in 2013 as the original website that had been used since inception of the company was more designed for a ‘deal of the day’ with the new site focused on being a marketplace.

During the following year, Groupon experienced record-breaking holiday sales in North America during the Black Friday weekend and this turned out to be four of the most successful days in Groupon’s six-year history.

A lease was signed by Groupon in 2016 for around 42,000 square feet of space which created room for around 400 more employees, 300 more than the total amount employed in Washington at that stage.

Today, Groupon employs more than 6,000 people and after Rich Williams and COO, Steve Krenzer stepped down in March, Aaron Couper took up the position as CEO, with both Williams and Krenzer still being employed by Groupon.

Following 2016, Groupon reduced the areas that it covered from 27 countries to around 15, including having made the decision to shut down operations in South Africa.

Groupon oversees a high-value, extensive and vast product portfolio of products ranging from automotive, beauty and spas, food and drink, health, and fitness and more along with services and products that include hotel and travel along with various deals and coupons.

From its inception, Groupon gained a significant amount of popularity and by 2010, the company had been valued at $1.35 billion.

Groupon’s core principles were so successful that by 2015 around 88% of merchants reported that through their Groupon deal, they obtained a significant amount of new customers.

At the very same time, around 82% of customers reported that they are likely to return to various merchants featured through Groupon. At the time, the primary customer base consisted of female customers with a college education.

When entering into new markets, Groupon seeks and identifies successful local businesses by sending a significant amount of employees into the market to research it and upon finding a business with exceptional reviews, salespeople approach the business.

During this phase, Groupon salespeople explain the business model of the company and they make use of social marketing sites, such as Facebook in particular, to promote the idea even further.

Groupon has served a significant amount of markets in different countries which includes, but is not limited to the United States, Canada, Germany, Greece, the UK, India, and several more.

By 2014, the consolidated gross billings for Groupon pertaining to the full 2014 year had increased around 32% YOY to $7.6 billion and in 2017, net income reported for the final quarter had amounted to around $14.04 million.

By 2014, the consolidated gross billings for Groupon pertaining to the full 2014 year had increased around 32% YOY to $7.6 billion and in 2017, net income reported for the final quarter had amounted to around $14.04 million.

Groupon’s mobile application, Groupon Now, was launched in 2011 with only two options worked into the application that users could make use of namely “I’m Hungry” and “I’m Bored”.

When utilizing the application and clicking on either button, Groupon locates the closest and best deals pertaining to either food or entertainment, respectively, by making use of geolocation.

In 2025, due to Covid-19 and its widespread impact on various businesses, Groupon took initiative in ensuring that the expiry dates on outstanding vouchers was extended along with opening all inventory along with eliminating restrictions on time and date redemption.

Groupon has made conceited effort in assisting its merchants, customers, and employees during the global pandemic through constant communication and innovation towards opportunities in helping communities while strengthening its leadership position.

Groupon trades its shares on the NASDAQ Stock Market (NASDAQ) under the stock symbol GRPN and it forms part of the Russell 2000 Component.

In an analysis of the financial data pertaining to the market performance for Groupon pertaining to the fourth quarter of 2019, which ended in December, indicated gross profit of $310 million along with $1.2 billion for the full year.

Groupon’s quarterly income from continued operations amounted to $79 million, with a loss of $14 million for the entire year.

The adjusted EBITDA for Groupon was $84 million for the fourth quarter and $227 million for the full year.

Due to the solid and continued financial and market performance, shareholders who buy or sell Groupon shares can expect solid dividends and returns in the 2025 quarters to follow.

With the current market strategy, forecasts pertaining to financial situations show some decrease in shares, but there are conceited efforts in managing the business and monetary risks resulting from the continuing pandemic.

Shares are expected to drop in Groupon due to the spread of Covid-19, but despite this, Groupon has worked with conceited efforts to develop and implement a market strategy that will inevitably carrying it through the pandemic.

Groupon has ensured that communication to both merchants and customers are firmly in place and that there are updates as news occurs.

Retail and e-commerce

Electronic commerce

Online deal Marketplace

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