View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. What Is
September 14, 2016updated 21 Mar 2017 2:20pm

What is Groupon?

One of the best online marketplaces to grab yourself a bargain.

By Hannah Williams

Groupon is an online marketplace which offers deals and discounts on travel, goods and services.

The eCommerce marketplace connects millions of subscribers with local merchants and retailers, offering discounts and deals on local attractions, activities and goods.

Serving more than 28 countries, Groupon was first launched in Chicago in 2008 as the brainchild of now ex-CEO Andrew Mason. Mason’s idea soon garnered the attention of his former employer, Eric Lefkofsky, who gave $1 million in seed money to help develop the idea. Just two years after Groupon launched, the company was valued at $1.35 billion.

Today, the company  serves more than 500 cities worldwide with nearly 50 million customers searching over 425,000 active deals.


Who tried to buy Groupon for $6 billion?

Giving a new twist to the coupon world, Groupon works by offering different deals every day to its users, with every different deal a service, event or product. Usually, deals are only valid for a certain period of time, or if a certain number of people buy the deal within 24 hours.

Once the number of people required to make the deal valid is reached, the discount code or offer is activated. Groupon works on the coupon model of being a loss leader – this being any type of sale of discount that entices people to spend money. Usually the business will lose money because of the discount, but the hope is that the customer will spend more money on other things or become a regular.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

Groupon has certainly enticed people to become regulars, with the online marketplace rapidly growing to such an extent that in 2010, tech giant Google offered $6 billion to buy the company. Groupon declined the mega-offer.


Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.