Whatever happened to Groupon? (2024)

FAQs

Why is Groupon not popular anymore? ›

Groupon faced a deluge of competition from other platforms, many of which it acquired. Google's changes to subscription emails dented Groupon's open rates in 2013; in Q3, Groupon reported a $2.6m net loss. The platform struggled to diversify; attempts to offer physical goods faltered.

Despite multiple attempts at a turnaround, Groupon continued its terminal decline. Today, it's still operating but is losing money and is on track to run out of cash within the next year.

Low customer lifetime value (CLV)

Groupon's business model relied heavily on offering deep discounts to attract customers, which did not result in long-term customer loyalty for the merchants. Many businesses complained that the deals were not profitable and did not lead to repeat customers.

Number of Groupon active customers 2009-2024

From nearly 54 million unique customers purchasing at least one offer on the site in the fourth quarter of 2014, this figure shrank to 16.1 million buyers by the first quarter of 2024.

User reports indicate no current problems at Groupon

Groupon is a e-commerce websites that sells activities, travel, goods and services.

The dealmaker rebrands itself into nearbuy as Sequoia Capital invests Rs 100 crore into the business. Last week, when deals platform Groupon was rebranded as nearbuy in India, it surprised many.

Groupon Warns It May Not Survive. Its Stock Is Tumbling. AI's Next Big Thing Is Fast and Scary Smart. It Even Writes Poetry.

As Groupon is mainly used by shoppers on smartphones, its mobile application serves as an important purchasing channel for the company. In 2023, the Groupon app was downloaded about 5.6 million times worldwide, ranking ninth among the leading discount and offer apps worldwide.

Why did Groupon crash? ›

Declining revenue, high marketing spend, unprofitable

Revenue fell 3% year over year to $124.6 million. Investors hate shrinking revenues, so this was a negative right off the bat. Further down the income statement, it gets even worse. Groupon spent $36.5 million on marketing in the quarter, or 32% of gross profit.

Your voucher may always be redeemed at the merchant who issued it for at least the amount you paid for it – even if the promotional value has expired.

Groupon is forecast to grow earnings and revenue by 67.6% and 5.6% per annum respectively while EPS is expected to grow by 112.5% per annum.

In 2023, the daily deal website Groupon generated an annual revenue of nearly 515 million U.S. dollars. This figure has steadily decreased in recent years. The coupon company reached its highest global revenue in 2016 at just over 3 billion U.S. dollars.

Over the past 10 years, Groupon has been profitable 3 times. However, its operating margin of -15.45% ranks worse than 69.11% of 586 companies in the Interactive Media industry, leading to a profitability rank of 4 out of 10.

Declining revenue, high marketing spend, unprofitable

Further down the income statement, it gets even worse. Groupon spent $36.5 million on marketing in the quarter, or 32% of gross profit. This was a huge jump from 20% of gross profit a year ago.