L. Yltävä
Research expert
Groupon - statistics & facts
Launched in the U.S. city of Chicago just a month before the beginning of the 2008 global financial crisis, the deals site Groupon proved to be a real lifeline for both consumers and sellers in times of economic uncertainty. 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. dollars in 2016, Groupon's revenue dropped to just half a million in 2023.
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. Of these downloads, approximately 2.9 million came from its home country, the United States. However, there it ranked far behind the leading app, Fetch, which amassed over ten million app downloads that year.
Despite its initial success, Groupon was unable to sustain its popularity and financial performance in the long run. The decline of Groupon could be due to a combination of factors, including its struggle with profitability, its business model, and intense competition from other coupon and rebates sites and apps.
A failing business model
The downfall of Groupon can be attributed to several factors. Firstly, the daily-deals site struggled to achieve profitability, even during its peak. In 2016, the company recorded a net income loss of around 183 million U.S. dollars, which continued to fluctuate in the following years, and in 2023, stood at negative 53 million dollars. Secondly, the business model proved to have inherent flaws, as it resulted in customers often purchasing subpar services and businesses acquiring one-time customers who were unlikely to make future full-priced purchases. Lastly, the market is saturated with numerous competitors, resulting in Groupon's decline in popularity and ultimately rendering its business model unsustainable.Website or app, competition is tough
When taking a closer look at its competitors, Groupon did not even rank as one of the five most popular coupon and rebates websites worldwide or in the U.S. in 2023. Globally, this top spot was held by rakuten.com, which offers cashback on online purchases. In the U.S., this coveted position was taken by capitaloneshopping.com, a coupon website.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. Of these downloads, approximately 2.9 million came from its home country, the United States. However, there it ranked far behind the leading app, Fetch, which amassed over ten million app downloads that year.
Despite its initial success, Groupon was unable to sustain its popularity and financial performance in the long run. The decline of Groupon could be due to a combination of factors, including its struggle with profitability, its business model, and intense competition from other coupon and rebates sites and apps.
