Groupon, Inc. at a Glance


  • Flexible work environment
  • Good compensation


  • Rapid growth has created instability and dissatisfaction
  • Increasing competition from rival firms

The Bottom Line

  • Groupon's rapid growth has made it one of the best-known companies on the web, but has also brought growing pains and questions about the long-term viability of its business model.

About Groupon, Inc.

Savvy consumers get their coupon on with Groupon. Tapping into the power of collective buying, the company helps businesses attract customers by offering them a unique way to save on things to eat, see, and do in some 50 countries. In each participating city, Groupon advertises a daily deal, typically a half-off coupon for anything from a local restaurant or retail store to a hotel or spa; if enough consumers buy the coupon online by midnight, the deal is on and the featured business can achieve a nice chunk in sales. It also sells merchandise in rotating categories via Groupon Goods. In late 2010, the company rejected a reported $5.3 billion buyout offer from Google. Groupon went public instead in late 2011.


Groupon filed its IPO shortly after online networking service LinkedIn's initial public offering flew off the shelves. Looking to capitalize on the market momentum generated by LinkedIn and other social online services, Groupon initially expected to raise about $750 million by going public. Eventually the offering raised around $700 million. The company has used the IPO proceeds to invest in growing its global brand and improving its technology.


Groupon claims more than 40 million active customers (those purchasing a Groupon within the past twelve months) worldwide and uses its website (searchable by locale) and opt-in e-mails to help businesses market their goods or services. The group buying model is a red-hot trend with smaller competitors and startups racing to gain some of the company's market share. The Groupon model was designed as a lower-risk alternative to traditional advertising. Whereas most marketing campaigns -- print ads, radio spots, and TV commercials -- require upfront payment, Groupon costs businesses nothing out-of-pocket. Once a daily deal reaches its buyer quota, also called a tipping point, Groupon takes a cut and the company takes the remainder.

Groupon serves a wide range of industries, including automotive, beauty and fitness, consumer goods, electronics, entertainment, fashion, financial services, food and beverage, health, and travel. Businesses can sign on to be featured on Groupon through the GrouponWorks portal. A feature on the Groupon website can attract thousands of subscribers in each city, who then can share the offer through  Facebook Twitter, and other social media to create even more buzz. Demographically, Groupon tends to attract younger, Internet friendly consumers. The majority of its subscribers are college educated and fall between the ages of 18 and 34.

Geographic Reach

Geographically, the US is Groupon's largest market, followed by Canada and Europe. In fiscal 2013, the company earned about 40% of its revenue outside of North America.

Financial Performance

The company reported fiscal 2013 revenue of $2.5 billion, up from $2.3 million in fiscal 2012. The growth was driven primarily by an increase in active customers and the Groupon Goods program.


Looking to corner a key market, in 2011 Groupon teamed up with Live Nation, the world's largest ticket seller, to form a joint venture, GrouponLive, that offers group discounts and promotions for local tickets to concerts, sporting events, and other attractions. Also that year it launched its Groupon Goods program, in which it acts as the merchant of record for deals on well-known brands of merchandise (electronics, clothing, toys).

In 2012 Groupon became the daily deal site for Major League Baseball.

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Groupon, Inc.

600 W Chicago Ave Ste 400
Chicago, IL 60654-2067
Phone: 1 (312) 334-1579


  • Employer Type: Public
  • Stock Symbol: GRPN
  • Stock Exchange: NASDAQ
  • CEO: Eric P. Lefkofsky
  • Chairman: Theodore J. Leonsis
  • COO: Rich Williams

Major Office Locations

  • Chicago, IL

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