Can you trust Groupon?
The short answer: groupon is absolutely legitimate, but the experience depends on how (and where) you use it. Founded in 2008, groupon, inc. Nasdaq: grpn) is a publicly traded company that connects millions of customers with verified local businesses every year. If you’re wondering “is groupon legit? Groupon has grown into a giant marketplace with over 63,000 reviews on trustpilot and a solid trustscore of 4 out of 5. About 63% of users give it a 5-star rating, which means most customers find value in the deals.Is it still safe to buy things on Groupon? Yes, with caveats. Most deals are legit, especially those tied to local services. But just like you’d check Yelp before walking into a new restaurant, you should research the business behind the deal.Groupon, American e-commerce company that offers deep discounts, usually 50–90 percent, for popular products and services by using a group discount model. The company’s name is a portmanteau of group and coupon. Groupon was cofounded by Andrew Mason, Eric Lefkofsky, and Brad Keywell in 2008.Mere weeks after rejecting Google’s offer, Groupon raised $500 million and used about $344 million to buy shares from investors, thus rewarding the early investors and longtime employees who would have benefited from a Google acquisition, the Wall Street Journal reports.
Why is Groupon not popular anymore?
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. Groupon Hurts Loyal Customers Using Groupon has a similar effect on your regulars and your loyal customer base. By taking a loss using Groupon to obtain new customers, you are essentially forcing your loyal customers to make up for your losses. And this is counter-intuitive to the way you should be doing business.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.Daily-deal platforms like Groupon and Woot still attract millions of bargain-hunting shoppers. In fact, Groupon alone saw around 18 million active customers in 2023—proof that the appetite for short-term discounts hasn’t gone anywhere.The customers they won with damagingly low deals on Groupon did not become loyal customers but moved on to exploit the next amazing deal, leaving small businesses with only the costs. As a result, they pulled back from their deals, and Groupon had to expensively acquire new businesses to keep the deals site full.
Is Groupon owned by Google?
Google offered to buy Groupon, then a two-year-old local e-commerce startup, for $5. But the deal fell through for three main reasons, according to writer Frank Sennett, the author of a forthcoming book on the company. Google offered a $800 million breakup fee. Additional investor concerns arose after the company restated 2011 revenues downward in March 2012. As of 2024, Groupon operates with a leaner workforce and has shifted focus to digital vouchers and services after discontinuing much of its physical goods segment.Reviewers mention that Groupon has a larger market segment focus on small businesses, with 70. LivingSocial only has 38. Groupon may be more tailored to the needs of small business owners.In recent years, Groupon has shifted greater focus toward higher-margin local experiences and services, phasing out lower-margin goods. As of 2025, Groupon’s Local segment in North America was the primary growth driver.Summary. Shares of Groupon have continued to slide, as revenue trends worsen despite higher marketing spend. Groupon’s business model suffers from dis-economies of scale, requiring costly sales efforts to chase local deals, leading to a vicious cycle of revenue decline and expense cuts.
Who pays for Groupon?
Groupon finds these deals, negotiates with the businesses, and makes the offers available for consumers on an online platform. Groupon makes money from fees paid by merchants whose customers use their coupons, and the businesses gain attention and patronage from consumers. Groupon – About the company Groupon is a public company based in Chicago (United States), founded in 2007 by Andrew Mason, Brad Keywell and Eric Lefkofsky. It operates as an Online marketplace offering deals on multi-category products and services.