Is Groupon profitable?
According to the 2 industry analysts covering Groupon, the consensus is that breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of US$26m in 2026. The company is therefore projected to breakeven just over a year from now. However, the last few years have presented a real challenge for the business, which has seen its financial results slump. From an all-time high of three billion U. S. Groupon’s revenue dropped to just under half a million in 2024.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.Through our study, we’ve discovered that Groupon is losing roughly $1,117,808 per day (or $408 million/year), and that’s a conservative estimate.Groupon’s revenue grew 1% y/y to $125. Wall Street’s expectations of $122. Overall revenue growth accelerated five points versus a -4% decline in Q1, certifying that the company’s revenue growth is following the recent improving trend in billings.
Who pays for Groupon?
groupon makes money from fees paid by merchants whose customers use their coupons, and the businesses gain attention and patronage from consumers. Groupon is a great way for businesses to get noticed, but it also comes with some drawbacks. When businesses list deals on groupon, they have to offer steep discounts, and then groupon takes a big cut of the revenue. That means less money going back into improving our lanes, food, arcade, and overall experience.Groupon offers deals in more locations throughout the globe, but LivingSocial wins this round by offering the same types of deals, plus specialized deals in the Adventures and Escapes categories. Group buying services only work if they can deliver enough customers to a merchant to make the experience worthwhile.Groupon charges 50% of the sales revenue as its fee. What makes Groupon unique? Groupon has numerous contenders that offer a comparative or contending product offering.While there is no fee to join Groupon, we charge a commission rate on all sales, which varies. The margin depends on your business’s category or industry.Why the downfall? Critics have long called Groupon’s model unsustainable. Customers get subpar services from swamped businesses, while businesses get a bad deal in the long term. One analysis found only ~20% of Groupon buyers returned for full-price purchases.
Is Groupon a good place to work?
Is Groupon a good company to work for? Groupon has an overall rating of 3. This rating has been stable over the past 12 months. Groupon to a friend and 44% have a positive outlook for the business. If you’re brand new to the Groupon experience, you’ll be able to unlock a Groupon voucher code and save 15% on your first purchase – whether that’s a trip to your favourite restaurant or a weekend away.Additionally, any unredeemed voucher may be returned to us within the first three days of purchase for a refund of the amount paid unless the deal is marked as final sale. After that three day time period, Groupon will not refund any voucher and all sales are final, unless otherwise stated in the Fine Print.But with such steep markdowns, it’s natural to question whether the savings are safe or just too good to be true. Here’s the short answer: Groupon is a legitimate marketplace that connects you with verified businesses offering real discounts.The word Groupon is a portmanteau of the words group and coupon. The company partners with providers of goods and services by hosting a discount deal and keeping a percentage of the profit as a marketing fee. That percent varies, but the reported average is 50%.
Who is the CEO of Groupon?
Dusan Senkypl Dusan co-founded Pale Fire Capital in 2015 and serves as Chairman and CEO. In conjunction with his appointment to Groupon CEO, Dušan will be stepping down from day-to-day responsibilities at Pale Fire Capital. On May 7, 2024, Dusan was appointed permanent CEO. Dusan is an entrepreneur by trade. Chief Executive Officer & Director, Groupon, Inc. Mr. Senkypl is the founder of Pale Fire Capital SE, founded in 2015, where the title held is Partner since 2015. Current jobs include Chief Executive Officer & Director at Groupon, Inc.
Why is Groupon not popular anymore?
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. Groupon Deteriorates The Value Of Your Business If company X can offer a 50% discount and still make a good profit, then they must be jacking up their prices. Once a customer receives a large discount, it trains them to wait for later coupons and deteriorates the value of your products and services.If you have an expired Groupon, you can often still use it with the merchant for the amount you paid for the deal. The expiration date found on your Groupon refers to the date that the value listed on the deal page—also known as the promotional value—is no longer valid.
Does Google own Groupon?
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. 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.The deals offered daily through Groupon start at 50 percent off and can go as high as 90 percent cheaper than the normal price. Groupon can offer such steep discounts because it guarantees business owners a minimum return on their investment and the possibility of becoming an overnight sensation.You can sell on Groupon by submitting your details, creating a campaign, and preparing staff, and then use our Merchant Center to track your results. Selling on Groupon helps local businesses attract new customers, increase sales, and build brand awareness.Is Groupon a good company to work for? Groupon has an overall rating of 3. This rating has been stable over the past 12 months. Groupon to a friend and 45% have a positive outlook for the business.