Groupon

The idea that would eventually become Groupon was born out of founder Andrew Mason's frustration trying to cancel a mobile phone contract in 2006. Mason thought that there must be some way to leverage the collective bargaining power of a large number of people. In 2007 Mason launched The Point, a web platform based on the "tipping point" principle that would utilize social media to get people together to accomplish a goal. The Point was intended to organize people around some sort of cause or goal. It gained only modest traction in Chicago until a group of users decided their cause would be saving money. They wanted to round up people to buy the same product in order to receive a group discount. Founder Eric Lefkofsky wanted the company to pivot in order to focus entirely on group buying. Born from The Point, Groupon was launched in November 2008.{{cite web| title = The History of Groupon|url = https://www.forbes.com/sites/mashable/2011/01/07/the-history-of-groupon/| website = Forbes |access-date = 2015-12-01}}{{cite web|title = The History of Groupon – Groupon Works|url = https://www.grouponworks.com/articles/groupon/overview/company-history/the-history-of-groupon/|website = Groupon Works|access-date = 2015-12-01|language = en-US}}{{cite web|title = INSIDE GROUPON: The Truth About The World's Most Controversial Company|url = http://www.businessinsider.com/inside-groupon-the-truth-about-the-worlds-most-controversial-company-2011-10 |website = Business Insider|access-date = 2015-12-01}}

The name for the e-commerce platform, Groupon is a portmanteau of "group" and "coupon". Groupon's first deal was a two-pizzas-for-the-price-of-one offer at Motel Bar, a restaurant on the first floor of its building in Chicago.{{cite web|title=About Us|url=http://www.groupon.com/about|publisher=Groupon|access-date=1 December 2011}}{{Cite book|title=Marketing |last=Kerin| first=Roger|year=2013}}

The decision to focus on group buying proved wise. In just a year and a half, Groupon grew from a staff of a few dozen to over 350. Revenue and bookings also grew swiftly, and the company was valued at over $1 billion after just 16 months in business, the fastest company ever to reach this milestone.{{cite web|title = Groupon is still the fastest company to reach a billion-dollar valuation |url = http://qz.com/398090/groupon-still-the-fastest-company-to-reach-a-unicorn-billion-dollar-valuation/|website = Quartz| date=5 May 2015 |access-date = 2015-12-01|language = en-US}}

On June 2, 2011, Groupon filed to go public under the ticker symbol GRPN.{{Cite web|url=https://latimesblogs.latimes.com/technology/2011/06/groupon-files-for-750-million-ipo.html|title=Groupon files for a $750-million IPO|date=2011-06-02|website=LA Times Blogs – Technology|language=en-US|access-date=2019-09-24}} The company went public on November 4, 2011, with its shares listed on Nasdaq.{{Cite web| url=https://money.cnn.com/2011/11/04/technology/groupon_IPO/index.htm|title=Groupon spikes 31% in IPO|last=Pepitone| first=Julianne |website=CNN |access-date=2019-09-24}} It was the biggest IPO by an Internet company since Google in 2004.{{Cite news| url=https://www.reuters.com/article/us-groupon-idUSTRE7A352020111104|title=Groupon's IPO biggest by U.S. Web company since Google|date=2011-11-04|newspaper=Reuters|access-date=2016-04-11}} The IPO was handled by Morgan Stanley, Goldman Sachs Group and Credit Suisse Group.{{Cite news|url=https://www.reuters.com/article/us-groupon-idUSTRE7A352020111104 |title=Groupon's IPO biggest by U.S. Web company since Google|date=2011-11-04|work=Reuters|access-date=2019-09-24|language=en}}

On August 10, 2011, Groupon updated its IPO filing, after facing scrutiny from regulators and analysts over its use of a non-standard accounting metric called Adjusted Consolidated Segment Operating Income. Critics argued that ACSOI was used by Groupon to present a misleading metric of profitability. Groupon's original IPO filing with ACSOI accounting showed a positive operating income of $60.6 million for 2010; after replacing the ACSOI metric with standard accounting metrics, Groupon's IPO filing reported an operating loss of $420 million for 2010.{{cite news|url=https://money.cnn.com/2011/08/10/technology/groupon_accounting/|title=Groupon updates IPO filing, admits it's unprofitable Website|author=Julianne Pepitone|date=August 10, 2011|work=CNN|access-date=September 23, 2011}} Prior to the IPO, some analysts criticized Groupon's decision to pay out over $940 million of the $1.12 billion in venture capital Groupon had raised before the IPO – over 84% of its venture capital raised – as cash payouts to its 3 founders and early backers, rather than into the company.{{cite news|url=http://www.privco.com/press/october-21-2011-groupons-3rd-quarter-financials-filed-this-morning-privcocom-analysis-all-key-business-metrics-took-quarterly-sequential-tumble-again/|title=Groupon Amends its IPO Filing to Reflect 3rd Quarter Financials; All Key Business Metrics Took Quarterly Sequential Tumble – Again Website|author=PrivCo|date=October 21, 2011|access-date=October 26, 2011}} The large cash payout also made Groupon technically insolvent when it filed for its IPO.{{cite news|url=http://blogs.smeal.psu.edu/grumpyoldaccountants/archives/362/|title=GrouponIs Technically Insolvent Website|author=Grumpy Old Accountants|date=September 23, 2011|access-date=October 26, 2011|url-status=dead|archive-url=https://web.archive.org/web/20111023192916/http://blogs.smeal.psu.edu/grumpyoldaccountants/archives/362|archive-date=October 23, 2011}}

In 2012, it was noted that Groupon had lost 80% of its value since its initial public offering the previous year.{{cite news |title=Groupon Struggles With Weak International Demand for Deals |url=http://adage.com/article/digital/groupon-struggles-weak-international-demand-deals/238236/ |access-date=19 August 2020 |work=adage.com |date=9 November 2012 |language=en}} The stock had since rebounded and was trading around $8 in Q1 2015 before plunging as low as $2.15 in early 2016.{{cite news|url=http://quotes.wsj.com/GRPN?mod=DNH_S_cq|title=Groupon Inc.|work=The Wall Street Journal|access-date=April 8, 2017}}

Prior to the company's fifth anniversary, the Groupon website was completely redesigned and new features were added in November 2013. According to the SVP of product management, the original website was "designed for a deal of the day and the new site is designed for a marketplace." Following the website relaunch, the company rewarded a random selection of one million customers on November 20, 2013, with up to US$5,000 worth of "Groupon bucks".{{cite web|title=Groupon Redesigns Website for First Time in Five-Year History|url=http://mashable.com/2013/11/01/groupon-redesign/|work=Mashable|access-date=15 November 2013|author=Seth Fiegerman|date=1 November 2013}}{{cite web|title=Groupon Giving Away $5 Million in 'Groupon Bucks'|url=http://mashable.com/2013/11/13/groupon-5-million/|work=Mashable|access-date=15 November 2013|author=Todd Wasserman|date=15 November 2013}}

Groupon recorded record-breaking holiday weekend sales in North America during the full (Black Friday through Cyber Monday) weekend of 2014 (Nov. 28 – Dec. 21), representing the most successful four days ever in the company's six-year history, with sales up more than 25% year over year. Black Friday and Cyber Monday were the two biggest days in Groupon's North American history."Groupon Announces Fourth Quarter and Fiscal Year 2014 Results." Groupon. February 12, 2015. Retrieved March 1, 2015. http://investor.groupon.com/releasedetail.cfm?releaseid=896215 {{Webarchive|url=https://web.archive.org/web/20150530005846/http://investor.groupon.com/releasedetail.cfm?releaseid=896215 |date=2015-05-30 }}.

Following Amazon.com's December announcement on drone delivery, Groupon reacted with a plan for "Groupon catapults".By Daniel Rothberg, Los Angeles Times."[https://www.latimes.com/nation/shareitnow/la-sh-amazon-drones-groupon-catapults-20131211,0,7537810.story#axzz2nOhoPc7g / Amazon drones, meet Groupon catapults]." December 11, 2013. Retrieved December 13, 2013.

On December 29, 2014, Groupon's shares rose by 1.4% after it was reported that Goldman Sachs was "weighing an investment in one of the daily deal company’s units."{{cite news |last1=Report |first1=Post Staff |title=Goldman Sachs looking for Groupon deal: report |url=https://nypost.com/2014/12/30/goldman-sachs-looking-for-groupon-deal-report/ |access-date=19 August 2020 |work=New York Post |date=30 December 2014}}

Groupon named a new Chief Operating Officer on June 2, 2015, Rich Williams and in November, Williams was named CEO.{{cite news|title=Groupon names new COO, says CFO will leave company|url=https://www.chicagotribune.com/bluesky/originals/ct-groupon-coo-cfo-bsi-0603-story.html|website=Chicagotribune.com|publisher=Chicago Tribune|access-date=3 June 2015|date=June 3, 2015}}{{cite web|last1=Mac|first1=Ryan|title=Groupon Shares Crumble After Company Names New CEO|url=https://www.forbes.com/sites/ryanmac/2015/11/03/groupon-names-coo-rich-williams-as-new-ceo-former-chief-eric-lefkosky-becomes-chairman/|work=Forbes|access-date=5 November 2015}}

On September 22, 2015, Groupon announced they would be eliminating approximately 1,100 positions, primarily in their sales and customer service operations.{{cite web|url = https://techcrunch.com/2015/09/22/groupon-is-laying-off-1100-at-a-cost-of-35m-shutters-operations-in-7-countries/|title = Groupon Is Laying Off 1,100 At A Cost Of $35M, Shutters Operations In 7 Countries| date=22 September 2015 }} As part of this restructure, they would also be ceasing operations in international markets such as Morocco, Panama, Philippines, Puerto Rico, Taiwan, Thailand and Uruguay. Exiting those markets was part of a strategy to boost profits.{{Cite news|url=https://www.forbes.com/sites/greatspeculations/2017/07/10/what-does-the-future-hold-for-groupons-international-business/#77b355332408|title=What Does The Future Hold For Groupon's International Business?|last=Team|first=Trefis|work=Forbes|access-date=2017-12-10|language=en}}

In January 2016, Groupon signed a lease in Seattle for 42,000 square feet of space in the 1201 3rd Avenue building in downtown. This creates room for 400 employees, up from 300 that Groupon currently employs in Washington.John Cook, GeekWire. "[http://www.geekwire.com/2016/groupon-inks-lease-downtown-seattle-room-400-workers/ Groupon inks lease in downtown Seattle with room for 400 workers]." Jan 15, 2016. Jan 25, 2016.

In May 2016, Groupon sued IBM, claiming that IBM had infringed the patent of technology that allows solicitation of customers based on where the customers are located. Groupon filed the lawsuit shortly after IBM accused Groupon of infringement in a previous lawsuit.Jonathan Stempel, Reuters. "[https://www.reuters.com/article/us-ibm-groupon-idUSKCN0Y02KG Groupon sues 'once-great' IBM over patent]." May 9, 2016. May 9, 2016. In October 2018 the separate lawsuit was settled, with Groupon paying IBM $57 million to cover the infringement and licensing of four patents.{{Cite news|url=https://techcrunch.com/2018/10/01/groupon-finally-settles-ibm-patent-suit-with-a-57m-payment/|title=Groupon finally settles IBM patent suit with a $57M payment|work=TechCrunch|access-date=2018-10-01|language=en-US}}

In November 2016, Groupon began to reduce its area of coverage from 27 countries down to 15. It shut down operations in South Africa on November 4 of that year.{{cite web|title=Groupon closes shop in South Africa as part of strategic re-alignment|date=4 November 2016 |url=http://innovation-village.com/groupon-closes-shop-south-africa-part-strategic-re-alignment/|publisher=Innovation Village|access-date=November 4, 2016}}

In March 2020, both Groupon's CEO Rich Williams and Chief Operating Officer Steve Krenzer stepped down from their roles. Despite that, both of them still remain employed by the company, "The terms of Mr. Williams’ and Mr. Krenzer's separations will be disclosed as available and required". Interim CEO Aaron Cooper was replaced by Kedar Deshpande.{{cite news|url=https://www.wsj.com/articles/groupons-ceo-chief-operating-officer-both-step-down-11585172335?mod=business_major_pos7|title= Groupon's CEO, Chief Operating Officer Both Step Down|work=The Wall Street Journal|author=Maria Armental|date=March 25, 2020|access-date=March 26, 2020}} Dušan Šenkypl became the company's new CEO in March 2023. {{Cite web |last=Lunden |first=Ingrid |date=2023-03-31 |title=Groupon, which has lost 99.4% of its value since its IPO, names a new CEO... based in Czech Republic |url=https://techcrunch.com/2023/03/31/groupon-which-has-lost-99-4-of-its-value-since-its-ipo-names-a-new-ceo-based-in-czech-republic/ |access-date=2023-04-03 |website=TechCrunch |language=en-US}}

In June 2022, Groupon settled a class action lawsuit with a group of investors for $13.5 million. The agreement resolved claims that Groupon has misled investors.{{Cite web |last=Jewett |first=Abraham |date=2022-06-30 |title=Groupon Agrees To Pay $13.5 Million To Resolve Claims It Misled Investors Over Its Financial State |url=https://topclassactions.com/lawsuit-settlements/securities/groupon-agrees-to-pay-13-5-million-to-resolve-claims-it-misled-investors-over-its-financial-state/ |access-date=2024-01-17 |website=Top Class Actions |language=en}}

In December 2022, two beauty salons, Salon Phoenix Cosmetology in Hoboken, New Jersey and Salon Hairroin in Los Angeles, filed a class action lawsuit against Groupon, arguing that company listed them on their website without their permission, thus tarnishing their reputations and stealing organic search traffic from them.{{Cite web |last=Jewett |first=Abraham |date=2023-11-27 |title=Judge gives final approval to Groupon settlement over inaccurate listings |url=https://topclassactions.com/lawsuit-settlements/consumer-products/class-action-lawsuit-accuses-groupon-of-listing-small-businesses-without-permission/ |access-date=2024-01-17 |website=Top Class Actions |language=en}} In November 2023, an Illinois federal judge approved a settlement (preliminarily approved in August 2023) between the two companies and Groupon. That settlement benefitted more than 2.5 million small businesses. All class members were also able to ask Groupon to remove or edit company profiles and expired deal pages.{{Cite web |last=Pletz |first=John |date=Aug 22, 2023 |title=Groupon settles class-action suit to let businesses gain control over web pages |url=https://www.chicagobusiness.com/technology/groupon-settles-class-action-lawsuit-over-unauthorized-pages |website=Crain's Chicago Business}}

Groupon owns numerous international operations, all of which were originally deal-of-the-day services similar to it, but most of which was subsequently re-branded under the Groupon name after the acquisition, including the European-based MyCityDeal (May 17, 2010), the South American ClanDescuento (June 22, 2010), the Japanese service Qpod.jp and Russian Darberry.ru (both acquired on August 17, 2010),{{cite web|title=Groupon Goes International, Buys Japanese and Russian Clones|date=17 August 2010|url=http://mashable.com/2010/08/17/groupon-international/|publisher=Mashable|access-date=August 17, 2010}} and the Singaporean Beeconomic.com (November 30, 2010), which was founded by brothers Karl Chong and Christopher Chong.{{cite web|author=Business Wire |url=http://www.businesswire.com/news/home/20101130007477/en/Groupon-Announces-Continued-Expansion-Asia |title=Groupon Announces Continued Expansion in Asia |publisher=Business Wire |date=2010-11-30 |access-date=2013-07-04}}

Groupon bought the Indian deal-of-the-day website SoSasta.com in January 2011 and re-branded it as "Crazeal by Groupon Inc."{{cite news|title=Groupon acquires India's e-commerce portal SoSasta.com|url=http://economictimes.indiatimes.com/tech/ites/groupon-acquires-indias-e-commerce-portal-sosastacom/articleshow/7305268.cms|access-date=January 17, 2011 | work=The Times Of India|date=January 17, 2011}} The Groupon acquisitions of uBuyiBuy launched services under the Groupon name in Hong Kong.{{cite news| url=https://www.wsj.com/articles/SB10001424052748704679204575647033055940528 | work=The Wall Street Journal | first=Amir | last=Efrati | title=Google Plots Move From Search to Sales | date=December 1, 2010}} In addition, Groupon acquired GroupsMore.com to expand its business in Malaysia.{{cite press release|title=Groupon Expands in Southeast Asia, now Offering Deals in Malaysia|date=25 January 2011|url=http://www.businesswire.com/news/home/20110125006969/en/Groupon-Expands-Southeast-Asia-Offering-Deals-Malaysia|access-date=January 25, 2011}}

Prior to these acquisitions, Groupon had bought out the mobile technology company Mob.ly, while The Point, Inc., the predecessor to Groupon, bought the trademark{{cite web|title=The Point, Inc. purchases trademark GROUP-ONS.|url=http://assignments.uspto.gov/assignments/q?db=tm&qt=sno&reel=&frame=&sno=77321666|publisher=United States Patent and Trademark Office}}

On August 4, 2011, the company acquired Obtiva, a large Chicago, Illinois-based Ruby on Rails and Agile Software Development consulting firm for an undisclosed amount, in order to boost its technology recruiting capabilities.{{cite news | url= http://www.chicagobusiness.com/article/20110804/NEWS08/110809910/groupon-buys-software-maker-obtiva | work= Crain's Chicago Business | title=Groupon buys software maker Obtiva | first=John | last= Pletz | date=4 August 2011}}{{Cite web|url = https://www.groupon.com/blog/cities/we-call-it-grouptiva-groupon-acquires-obtiva |title = We call it Grouptiva (Groupon Acquires Obtiva) |work = Groupon Blog |last = Mossler |first = Julie |date = 4 August 2011}}

In January 2012, the company acquired Mertado, a social shopping service based on the Facebook platform.{{cite web|title=Groupon Acquires Social Shopping Start-up Mertado|url=http://www.inc.com/courtney-rubin/mertado-acquired-by-groupon.html|work=Inc.com|publisher=Mansueto Ventures|access-date=11 November 2013|author=Courtney Rubin|date=23 January 2012}} In May 2012, Groupon acquired Breadcrumb, a point of sale system and iPad app that targets local restaurants.{{cite web|title=Tech Crunch|date=29 May 2012 |url=https://techcrunch.com/2012/05/29/groupon-picks-up-breadcrumb-for-a-little-pos-magic/|publisher=Tech Crunch}} Based on the May acquisition, Groupon launched Breadcrumb PRO and Breadcrumb POS, expanding its target beyond restaurants to include all types of local businesses.{{cite web|title=Groupon Expands Free Breadcrumb POS App |url=https://finance.yahoo.com/news/groupon-expands-free-breadcrumb-pos-123800761.html |work=Yahoo! Finance |publisher=Business Wire |access-date=11 November 2013 |format=Press release |date=24 July 2013 |url-status=dead |archive-url=https://web.archive.org/web/20131112005418/https://finance.yahoo.com/news/groupon-expands-free-breadcrumb-pos-123800761.html |archive-date=November 12, 2013 }}

On September 24, 2012, Groupon acquired restaurant reservation and discount site Savored for an undisclosed amount, providing Groupon with an inlet to higher-end restaurants. Groupon also announced that it would continue to operate Savored independently from the main Groupon website.{{cite news |url=https://dealbook.nytimes.com/2012/09/24/groupon-moves-into-restaurant-reservations-with-savored-deal/ |title=Groupon Moves Into Restaurant Reservations With Savored Deal |author=MICHAEL J. DE LA MERCED |date=24 September 2012 |work=Deal Book |publisher=The New York Times |access-date=18 December 2012}}

In December 2013, Groupon acquired Boomerang, a Lightbank-backed start-up that allows people to share gift cards and other deals from local merchants with their friends.{{cite news |last1=Ong |first1=Josh |title=Groupon acquires social gifting service Boomerang for its new Freebies category |url=https://thenextweb.com/insider/2013/12/09/groupon-acquires-social-gifting-service-boomerang-new-freebies-category/ |access-date=19 August 2020 |work=The Next Web |date=9 December 2013 |language=en-us}} Boomerang's two cofounders, Zachary Smith and Matthew Williams, along with eight employees went on to build a new digital-coupon offering, called Groupon Coupons.{{Cite web|url=http://groupon.com/coupons|title = Coupons & Promo Codes for September 2021 – Groupon}}

On January 11, 2013, Groupon acquired real-time location sharing mobile app and small business service provider Glassman, which was founded and led by Geoffrey Woo, Jon Zhang and Jonathan Chang.{{cite web|title=Groupon Acquires Realtime Location-Aware Service Glassmap To Help You Find Deals |date=12 January 2013 |url=https://techcrunch.com/2013/01/11/groupon-acquires-realtime-location-aware-service-glassmap-to-help-you-find-deals/|publisher=Techcrunch|access-date=October 10, 2013}} On September 9, 2013, Groupon announced acquisition of European last-minute travel app Blink (founded by Rebeca Minguela), which provides same-day hotel reservations.{{cite web|title=Groupon Acquires Last-Minute Hotel Booking App Blink Booking|url=http://ceoworld.biz/ceo/2013/09/09/daily-deals-site-groupon-acquires-last-minute-hotel-booking-app-blink-booking|publisher=CEOWORLD Magazine|access-date=September 9, 2013|archive-url=https://web.archive.org/web/20130921185242/http://ceoworld.biz/ceo/2013/09/09/daily-deals-site-groupon-acquires-last-minute-hotel-booking-app-blink-booking|archive-date=September 21, 2013|url-status=dead}}

In January 2014, Groupon bought ideeli, a fashion company, for $43 million.{{cite web|url=http://www.wwd.com/business-news/mergers-acquisitions/groupon-inks-43m-deal-for-ideeli-7354298?src=nl/mornReport/20140114|title=Groupon Buys Ideeli for $43 Million|author=Clark, Evan|date=14 January 2014|publisher=WWD|access-date=14 January 2014}} On October 2, 2014, Groupon unveiled Snap, a new app specifically for giving customers cash back when they buy certain items at the grocery store. Snap asks shoppers to upload photos of their receipts after they have gone to the supermarket to buy groceries. Certain items are then eligible for discounts, which shoppers receive in the form of a cash-back deal. The new app comes from Groupon's previous acquisition of SnapSaves, a Canadian start-up that works much like Snap.By Mike Isaac, The New York Times. "[http://bits.blogs.nytimes.com/2014/10/02/with-new-app-groupon-goes-after-grocery-deals/?_php=true&_type=blogs&_r=0 With New App, Groupon Goes After Grocery Deals]." October 2, 2014. October 7, 2014. In November 2014, Groupon acquired In-Store Analytics And Marketing Start-up, Swarm Mobile, a start-up that helps businesses connect with and track their customers while in stores.[https://techcrunch.com/2014/11/17/groupon-acquires-swarm-mobile/ Ha, Anthony November 17 2014 TechCrunch. "Groupon Acquires In-Store Analytics And Marketing Startup Swarm Mobile"]

On July 16, 2015, Groupon announced its acquisition of food-delivery service Order Up.{{cite web|url=https://techcrunch.com/2015/07/16/groupon-acquires-orderup-food-delivery-service/|title=Groupon Acquires OrderUp Food Delivery Service|author=Lucas Matney|date=16 July 2015|publisher=TechCrunch|access-date=16 July 2015}} Two weeks later, Groupon announced its own Food Delivery Business, Groupon To Go.{{cite web|url=https://techcrunch.com/2015/07/30/groupon-launches-its-own-food-delivery-business-groupon-to-go/#.tdg4nmc:588v|title=Groupon Launches Its Own Food Delivery Business, Groupon To Go|website=Tech Crunch|date=30 July 2015 |access-date=7 January 2016}}

In February 2016, Chinese online retailer Alibaba Group Holding Ltd disclosed that it had acquired a 5.6% stake in Groupon Inc.Hilary Kramer, Investor Place. "[http://investorplace.com/2016/03/grpn-groupon-stock-acquisition/#.Vv8D5fkrJpg Can a Major Acquisition Revitalize Groupon Inc (GRPN)?]." March 30, 2016. April 1, 2016. In April 2016, Groupon Inc. announced it received a $250 million investment from a private investment firm, Atairos Management LP, which has ties to Comcast Corp. The firm was founded by former Comcast Chief Financial Officer Michael Angelakis, who launched the firm earlier that year with more than $4 billion in committed capital from Comcast.Joshua Jamerson, The Wall Street Journal. "[https://www.wsj.com/articles/groupon-gets-250-million-investment-1459780738 Groupon Gets $250 Million Investment]." April 4, 2016. April 22, 2016.

In May 2018, Groupon acquired Bristol, UK-based Cloud Savings company for $65 million.{{Cite web|url=https://techcrunch.com/2018/05/01/groupon-acquires-uks-cloud-savings-co-parent-of-vouchercloud-for-65m/|title=Groupon acquires UK's Cloud Savings Company, parent of Vouchercloud, for $65M – TechCrunch|website=techcrunch.com|date=May 2018 |language=en-US|access-date=2018-05-21}}{{Cite news|url=https://www.bristolpost.co.uk/news/business/groupon-buys-bristol-business-65million-1569086|title=Groupon buys Bristol business for $65million|last=Baker|first=Hannah|date=2018-05-15|work=bristolpost|access-date=2018-05-21}}{{Cite news|url=http://www.dailyherald.com/business/20180501/groupon-buys-company-for-65-million-to-grow-internationally|title=Groupon buys company for $65 million to grow internationally|last=Wire|first=Business|work=Daily Herald|access-date=2018-05-21|language=en-US}}

When it first launched, the company offered one "Groupon" per day in each of the markets it served. The Groupon worked as an assurance contract using The Point's platform: if a certain number of people signed up for the offer, then the deal became available to all;{{cite news|url=https://www.reuters.com/article/newsOne/idUSTRE5592K720090610|title=Virtual "tipping point" leverages group deals|last=Cohen|first=Deborah|date=June 10, 2009|publisher=Reuters|access-date=November 30, 2009}} if the predetermined minimum was not met, no one got the deal that day. This reduced risk for retailers, who can treat the coupons as quantity discounts as well as sales promotion tools. In the early years before revenue splits began to adjust as necessary, Groupon made money by keeping approximately half the money the customer pays for the coupon. More recently that split could vary depending on many factors.{{cite web|url=http://www.washingtontimes.com/news/2009/jul/08/site-leverages-power-of-group-purchases/|title=Site leverages power of group purchases|last=Boston|first=Gabriella|website=The Washington Times|date=July 8, 2009|access-date=November 30, 2009}}"Is Groupon Changing Its 50/50 Revenue Sharing Model?" Daily Deal Media. May 20, 2011. Retrieved December 10, 2014. http://www.dailydealmedia.com/468is-groupon-changing-its-5050-revenue-sharing-model/ {{Webarchive|url=https://web.archive.org/web/20130731065231/http://www.dailydealmedia.com/468is-groupon-changing-its-5050-revenue-sharing-model/ |date=2013-07-31 }}

Unlike classified advertising, the merchants advertising on Groupon do not pay any upfront cost to participate: Consumers are able to search and browse deals via web or mobile and can subscribe to receive emails featuring deals they are interested in based on preferences they input. Groupon employs copywriters{{cite web|url=https://www.theatlantic.com/technology/archive/2010/12/forget-journalism-school-and-enroll-in-groupon-academy/68257/ |title=Forget Journalism School and Enroll in Groupon Academy |last=Weingarten |first=Elizabeth |work=The Atlantic.com |date=20 December 2010 }} who draft descriptions for the deals featured by email and on the website. Groupon's promotional text strategy in the early years for the deals has been seen as a contributing factor to the popularity of the site, featuring a distinctive mix of thorough fact-checking and witty humor.

Some publications have noted potential problems with the business model. For example, the Wall Street Journal has reported that a successful deal could temporarily swamp a small business with too many customers, risking a possibility that customers will be dissatisfied, or that there won't be enough product to meet the demand. In response to these issues, Groupon officials have stated that deals sold will be capped in advance to a number that the business can service effectively.

In 2015, it was reported that 88% of merchants agree that their Groupon deal brought in new customers, and 82% of customers say they are likely to return to the merchant again. One analysis found only ~20% of Groupon buyers returned for full-price purchases. {{Cite web |title=The Death of the Daily Deal |url=https://knowledge.wharton.upenn.edu/article/death-daily-deal/ |access-date=2023-04-03 |website=Knowledge at Wharton |language=en-US}}{{Cite web |last=Rylah |first=Juliet Bennett |date=2023-04-03 |title=Whatever happened to Groupon? |url=https://thehustle.co/whatever-happened-to-groupon/ |access-date=2023-04-03 |website=The Hustle |language=en-US}}

In 2010, it was reported that local merchants found it difficult to get Groupon interested in agreeing to a particular deal. According to the Wall Street Journal, seven of every eight possible deals suggested by merchants were dismissed by Groupon.

Groupon offers a mobile application which allows users to browse, buy deals, and redeem them using the screen as a coupon.

In addition to daily local deals, Groupon's channels have included: Groupon Goods, launched in September 2011, which focuses on discounted merchandise, although Groupon officially announced the closure of goods on February 19, 2020, but then decided almost three months later to phase down the Goods business and cut 44% of its employees;{{Cite web|title=Groupon cutting 2,800 jobs|url=https://www.chicagobusiness.com/john-pletz-technology/groupon-cutting-2800-jobs|date=2020-04-13|website=Crain's Chicago Business|language=en|access-date=2020-05-22}} Groupon Getaways,{{cite web|author=Business Wire |url=http://www.businesswire.com/news/home/20110712006358/en/Groupon-Getaways%E2%84%A2-Expedia-Offers-Deals-Today |title=Groupon Getaways with Expedia Offers First Deals Today |publisher=Business Wire |date=2011-07-12 |access-date=2013-07-04}} which offers vacation packages and travel deals; and GrouponLive,{{cite web|author=Business Wire |url=http://www.businesswire.com/news/home/20120411005315/en/Groupon-Announces-G-Pass-%E2%80%93-Expedited-Entry-GrouponLive |title=Groupon Announces G-Pass – Expedited Entry for GrouponLive Events |publisher=Business Wire |date=2012-04-11 |access-date=2013-07-04}} where consumers can find discounts on ticketed events {{cite web|url=http://travelwithkids.about.com/od/affordablegetaways/ss/Easy-Steps-to-Cheaper-Family-Trips.htm|title=7 Easy Steps to Cheaper Family Trips|author=Suzanne Rowan Kelleher|work=About|access-date=29 December 2014|archive-date=29 December 2014|archive-url=https://web.archive.org/web/20141229235411/http://travelwithkids.about.com/od/affordablegetaways/ss/Easy-Steps-to-Cheaper-Family-Trips.htm|url-status=dead}} Groupon has also emerged as a check on price increases for certain essential commodities in many countries.{{cite web|title=A Website which sells Onions for Rs. 9 per Kg only !|url=http://news.biharprabha.com/2013/09/a-website-which-sells-onions-for-rs-9-per-kg-only/|access-date=5 September 2013}}

Groupon has served markets in several countries including, the United States,{{cite web|url=http://www.groupon.com/cities |title=Groupon.com |publisher=Groupon.com |access-date=March 29, 2011}} Canada, Ukraine, Germany, Greece, France, the Netherlands, Belgium, the United Kingdom, India, Indonesia,{{cite web|title=Groupon Indonesia gets 500,000 daily visits, celebrates 3rd anniversary|url=http://www.techinasia.com/groupon-indonesia-500000-daily-visits-celebrates-3rd-anniversary/|work=TechInAsia|publisher=Tech In Asia|access-date=13 November 2013|author=Enricko Lukman|date=3 September 2013}} Ireland, Israel,[http://www.haaretz.com/israel-news/business/.premium-1.692471 Tapping into the Israeli love affair with getting whatever it is for less], Haaretz Denmark,{{cite web|url=http://www.businesswire.com/news/home/20110921005456/en/Groupon-Launches-Denmark|title=Groupon Launches in Denmark|author=Business Wire|date=2011-09-21|publisher=Business Wire|access-date=2013-07-04}} Thailand,{{cite web|url=http://www.businesswire.com/news/home/20120227005025/en/Groupon-Launches-Thailand|title=Groupon Launches in Thailand|author=Business Wire|date=2012-02-27|publisher=Business Wire|access-date=2013-07-04}} United Arab Emirates,{{cite web|url=http://www.businesswire.com/news/home/20110615006472/en/Groupon-Launches-Sharjah|title=Groupon Launches in Sharjah|author=Business Wire|date=2011-06-15|publisher=Business Wire|access-date=2013-07-04}} New Zealand{{Cite news|url=https://www.nbr.co.nz/article/groupon-%E2%80%93-25-billion-voucher-monster-%E2%80%93-readies-nz-launch-120-credit-offer-ck-90447|title=A sluggish GroupOn NZ launch|date=2011-05-12|work=The National Business Review|access-date=2017-10-25|language=en|archive-date=2017-10-26|archive-url=https://web.archive.org/web/20171026110445/https://www.nbr.co.nz/article/groupon-%E2%80%93-25-billion-voucher-monster-%E2%80%93-readies-nz-launch-120-credit-offer-ck-90447|url-status=dead}} and others. In 2010, Forbes noted that there were over 700 Groupon copycat sites, the majority of them existing overseas.

On February 19, 2011 The Wall Street Journal reported that Groupon was preparing to launch in China.{{cite news |title=Groupon Appears to Be Gearing Up for China Market |author=Loretta Chao |url=https://www.wsj.com/articles/SB10001424052748703407304576154194268892656?mod=WSJ_newsreel_business |newspaper=Wall Street Journal |date=February 19, 2011 |access-date=February 20, 2011}}{{cite news|url=https://www.reuters.com/article/us-groupon-idUSTRE71J1XV20110220 |title=Reuters.com |publisher=Reuters.com |date=February 20, 2011 |access-date=March 29, 2011 |first=Martinne |last=Geller}} Groupon subsequently entered into the China market in a joint venture with Tencent and launched "Gaopeng". After a year of struggling in the established market, Goapeng subsequently merged with Futuan.

Groupon also launched in the MENA region with Groupon UAE on June 16, 2011.{{cite web|url=http://www.dubaichronicle.com/2011/06/16/groupon-launches-in-sharjah/ |title=Groupon launched in Sharjah |date=June 16, 2011 |access-date=17 June 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110618030955/http://www.dubaichronicle.com/2011/06/16/groupon-launches-in-sharjah/ |archive-date=June 18, 2011 }}

Groupon entered the Indian market through the acquisition of local company SoSasta in Jan 2011.{{cite news |url=http://articles.economictimes.indiatimes.com/2011-01-17/news/28427352_1_portal-groupon-india-undisclosed-amount |archive-url=https://web.archive.org/web/20110903171101/http://articles.economictimes.indiatimes.com/2011-01-17/news/28427352_1_portal-groupon-india-undisclosed-amount |url-status=dead |archive-date=September 3, 2011 |title=Groupon acquires India's e-commerce portal SoSasta.com |access-date=16 March 2013 |work=The Times Of India |date=January 17, 2011}} Finally, after winning a battle to acquire the groupon.co.in domain name, the Indian business was renamed Groupon in Nov 2012.{{cite web |url=http://techcircle.vccircle.com/2012/10/30/crazeal-to-become-groupon-finally/ |title=Crazeal to become Groupon, finally! |date=30 October 2012 |access-date=16 March 2013}}{{cite web |url=http://couponsgrabber.in/deal-website-crazeal-now-revamped-groupon/ |archive-url=https://web.archive.org/web/20141015205909/http://couponsgrabber.in/deal-website-crazeal-now-revamped-groupon/ |archive-date=15 October 2014 |title=The Deal Website 'Crazeal' Now Revamped As Groupon |url-status=dead |access-date=9 October 2014 }} In August 2015, Groupon gave up control of its India unit to Sequoia Capital and renamed the company Nearbuy.{{cite news|title=Groupon Inc rebranded as Nearbuy, to focus more on mobile apps|url=http://economictimes.indiatimes.com/small-biz/startups/groupon-inc-rebranded-as-nearbuy-to-focus-more-on-mobile-apps/articleshow/48417876.cms|access-date=10 August 2015|publisher=The Economic Times|date=2015-08-10}} In February 2011, Groupon Russia announced it would join the Russian Company Mail.ru in order to start offering deals on its social network Odnoklassniki. This way, users would be able to buy and share deals from Groupon on their profiles.{{Citation needed|date=September 2019}}

New Enterprise Associates, Eric Lefkofsky and Brad Keywell are investors in Groupon (Lefkofsky and Keywell later formed the investment company Lightbank; Groupon is listed as a Lightbank investment).Matt Miller, The Deal Magazine. "[http://www.thedeal.com/magazine/ID/043024/features/private-equity,-chicago-style.php Private equity, Chicago style]." November 28, 2011. Retrieved December 12, 2011. {{webarchive |url=https://web.archive.org/web/20111231111240/http://www.thedeal.com/magazine/ID/043024/features/private-equity,-chicago-style.php |date=December 31, 2011 }} In April 2010, Groupon raised $135 million from Digital Sky Technologies, a Russian investment firm.Kim-Mai Cutler, VentureBeat. "[https://venturebeat.com/2010/04/19/groupon-dst/ Groupon Raises $135M from DST, signaling social buying comes of age.]" April 19, 2010. On December 29, 2010, Groupon's executive board approved a change to Groupon's certificate of incorporation that would permit the company to raise $950 million in venture capital funding, based on a valuation of $6.4 billion.{{cite web|url=http://www.thirdage.com/news/groupon-disses-google-groupon-raise-950-million-wake-buyout-attempt_12-29-2010 |title=Groupon Disses Google: Groupon to Raise $950 Million in Wake of Buyout Attempt |date=December 29, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110101143250/http://www.thirdage.com/news/groupon-disses-google-groupon-raise-950-million-wake-buyout-attempt_12-29-2010 |archive-date=January 1, 2011 }}

From January 2010 through January 2011, Groupon's U.S. monthly revenues grew from $11 million to $89 million. Consolidated revenue for the full year 2014 reached nearly $3.2 billion.

In October 2010, Yahoo! was rumoured to have offered over $3 billion to acquire Groupon.{{cite news|url=https://techcrunch.com/2010/10/16/getting-to-the-bottom-of-the-crazy-yahoo-groupon-rumors/|title=Getting To the Bottom of The Crazy Yahoo-Groupon Rumors|date=October 16, 2010}} On November 30, 2010, it was reported that Google offered $5.3 billion with a $700 million earnout to acquire Groupon and was rejected on December 3, 2010.{{cite news|url=https://www.wsj.com/articles/SB10001424052748704679204575647033055940528|title=Google in Talks to Buy Deal Site Groupon | work=The Wall Street Journal | first=Amir|last=Efrati|date=December 1, 2010}} After the rejection of the Google/Groupon buy-out, Groupon proceeded with their own initial public offering.

Groupon's consolidated gross billings for the full year 2014 increased 32% year-over-year to $7.6 billion.

In 2011, Groupon developed an application, Groupon Now, aimed at smartphone and tablet users. The application consists of two buttons: "I'm Hungry" and "I'm Bored." Once a user clicks on one of the buttons, the app then locates the closest and best deals for food or entertainment, respectively, using geolocation.{{cite web|last1=Frommer|first1=Dan|title=Groupon Launching "Groupon Now" Mobile Deals Service In April|url=http://www.businessinsider.com/groupon-now-2011-3|website=Business Insider|access-date=14 October 2016}}

Groupon have the Groupon Promise to ensure that customers are satisfied with their purchase and if customers are disappointed with their purchase, Groupon will try to work things out with the customers or give them a refund.{{cite web|url=http://www.groupon.com/groupon-promise |title=The Groupon Promise |publisher=Groupon.com |access-date=2015-12-24}} The Groupon Promise is essential in dissipating cognitive dissonance and perceived risk.

On February 20, 2012, Groupon announced a "VIP Membership" program, with a membership fee of $30 annually.{{cite magazine| url=https://business.time.com/2012/02/20/groupon-is-selling-vip-memberships-for-29-99/ | magazine=Time | date=February 20, 2012 | title=Groupon Is Selling 'VIP' Memberships for $29.99}} This program gives VIP members access to deals 12 hours earlier than non-members, as well as access to expired deals (in the "Deal Vault") and easy returns of deals (in exchange for "Groupon bucks").

Groupon MerchantOS is a suite of products and tools for merchants running with Groupon. The suite includes Groupon Rewards, Groupon Scheduler and Groupon Payments.

Groupon Rewards

On May 10, 2012, Groupon announced the launch of Groupon Rewards in the United States. Rewards is a loyalty program for merchants to reward customers for repeat visits with a Reward of their choosing. Unlike "buy 9 and get the 10th free" punchcards, a consumer earns Rewards by using any major credit card saved in their Groupon account when they visit their favourite local merchants. When a customer spends an amount pre-determined by the merchant, the customer unlocks a Reward to use on a future visit.{{cite web|author=Business Wire |url=http://www.businesswire.com/news/home/20110928005375/en/Groupon-Announces-Rewards-Program-Drive-Repeat-Visits |title=Groupon Announces Rewards Program to Drive Repeat Visits to Local Businesses |publisher=Business Wire |date=2011-09-28 |access-date=2013-07-04}}{{cite web|author=Business Wire |url=http://www.businesswire.com/news/home/20120510005377/en/Groupon-Rewards-Launches-Nationwide-Driving-Repeat-Business |title=Groupon Rewards Launches Nationwide, Driving Repeat Business for Local Merchants |publisher=Business Wire |date=2012-05-10 |access-date=2013-07-04}} The rewards program was later removed due to lack of engineering support.{{cite web|last1=Sisinni|first1=Fabio|title=Why Groupon Needs To Go Private To Rebuild Its Vision|url=https://techcrunch.com/2015/12/27/why-groupon-needs-to-go-private-to-rebuild-its-vision/|website=TechCrunch|date=27 December 2015 |access-date=13 June 2017}}

Groupon Scheduler

Groupon Scheduler is an online booking tool for merchants, allowing their consumers to seamlessly book appointments for services at the time of purchasing their Groupon deal. This tool is targeted at merchants running deals where appointments are required, for example in the health and beauty industry or for classes and activities.{{cite web|author=Business Wire |url=http://www.businesswire.com/news/home/20111207005838/en/Groupon-Announces-Groupon-Scheduler-Easy-Appointment-Management |title=Groupon Announces Groupon Scheduler, Easy To Use Appointment Management |publisher=Business Wire |date=2011-12-07 |access-date=2013-07-04}}

Groupon Payments

The newest addition to the suite of merchant-facing products is Groupon Payments, which was launched in September 2012. Groupon Payments offers merchants an infrastructure for accepting credit card payments at a low cost.{{cite web|author=Business Wire |url=http://www.businesswire.com/news/home/20120919006164/en/Groupon-Payments%E2%84%A2-Service-Offers-Local-Businesses-Lowest |title=New Groupon Payments Service Offers Local Businesses the Lowest Rates on Credit Card Transactions |publisher=Business Wire |date=2012-09-19 |access-date=2013-07-04}}

As of December 2015, MerchantOS is no longer a Groupon division.

Groupon aired a controversial Super Bowl XLV advertisement in which actor Timothy Hutton begins by making a plea for the people of Tibet before delivering the punch line: "But they still whip up an amazing fish curry."{{cite news|author=Jo Kent, CNN |url=http://edition.cnn.com/2011/WORLD/asiapcf/02/07/china.super.bowl.ad/ |archive-url=https://web.archive.org/web/20110209013813/http://edition.cnn.com/2011/WORLD/asiapcf/02/07/china.super.bowl.ad/ |url-status=dead |archive-date=February 9, 2011 |title=Edition.cnn.com |publisher=cnn.com |date= January 21, 2011|access-date=March 29, 2011}} Critics of the ad took to several social media outlets{{cite news|author= Doug Gross, CNN |url=http://edition.cnn.com/2011/TECH/web/02/08/groupon.tibet.explanation/ |archive-url=https://web.archive.org/web/20121023163619/http://edition.cnn.com/2011/TECH/web/02/08/groupon.tibet.explanation/ |url-status=dead |archive-date=October 23, 2012 |title=cnn.com |publisher=CNN |date=February 8, 2011 |access-date=March 29, 2011}} to argue that Groupon was using the plight of Tibetans to sell their services. The commercial angered consumers who described the ad with adjectives including "tasteless," "tacky," "vulgar" and "detestable".{{Cite news|url=https://www.chicagotribune.com/2011/02/08/groupon-super-bowl-commercial-gains-the-wrong-kind-of-attention/|title=Groupon Super Bowl commercial gains the wrong kind of attention|work=tribunedigital-chicagotribune|access-date=2017-08-23|language=en}} The following day, Groupon responded by defending their commercial and their philanthropic stance.{{cite web|url=https://www.google.com/hostednews/afp/article/ALeqM5hfx6XZsFw7cw-8pi7MEsl4B43wGw |title=Website on defensive over Tibet ad |date=February 7, 2011 |access-date=2019-09-19 |url-status=dead |archive-url=https://web.archive.org/web/20110211120330/https://www.google.com/hostednews/afp/article/ALeqM5hfx6XZsFw7cw-8pi7MEsl4B43wGw |archive-date=February 11, 2011 |website=Google |publisher=AFP }}{{cite web|author=andrew |url=http://www.groupon.com/blog/cities/our-super-bowl-ads-and-how-were-helping-these-causes/ |title=Groupon.com |publisher=Groupon.com |date=February 7, 2011 |access-date=March 29, 2011}}

On February 10, 2011, Groupon's founder Andrew Mason apologized and pulled the ad.{{cite web|author=andrew |url=http://www.groupon.com/blog/cities/one-last-post-on-the-super-bowl/ |title=Groupon.com |publisher=Groupon.com |date=February 10, 2011 |access-date=March 29, 2011}}

The company waited seven years before it would try another Super Bowl ad.{{Cite web|title=With a new Super Bowl ad, Groupon is back in the spotlight|url=https://money.cnn.com/2018/02/02/news/companies/groupon-super-bowl-ad-2018/index.html|last=Wiener-Bronner|first=Danielle|date=2018-02-02|website=CNNMoney|access-date=2020-05-22}} The commercial that aired during Super Bowl LII featured Tiffany Haddish, a comedian and active Groupon user.{{Cite web |title=Tiffany Haddish's Hilarious Groupon Story Has Landed Her a Super Bowl Ad Gig |url=https://fortune.com/2018/01/16/tiffany-haddish-super-bowl-ad-groupon/ |access-date=2024-01-02 |website=Fortune |language=en}}

In March 2011, Eli R. Johnson filed a lawsuit in federal court against Groupon, based on a claim that the company issues "gift certificates" that are not allowed under the Credit Card Accountability Responsibility and Disclosure Act. The act prohibits retailers from setting expiration dates less than 5 years after a card is purchased.{{cite news

|title=Groupon sued over deal expiration dates

|url=http://www.suntimes.com/business/4083887-420/groupon-sued-over-deal-expiration-dates.html

|newspaper=Chicago Sun Times

|last=Lansu

|first=Michael

|date=March 2, 2011

|access-date=Mar 11, 2011

}} The class action lawsuit was settled on December 17, 2012.[https://grouponvouchersettlement.com/ Groupon Voucher Settlement Website > Home]. Grouponvouchersettlement.com. Retrieved on 2013-09-05.

In March 2011, the Massachusetts Alcoholic Beverages Control Commission notified Groupon that it was in violation of state law that prohibits discounting of alcoholic beverages. Groupon notified Massachusetts subscribers of a temporary suspension in the use of its discount vouchers for alcohol at participating restaurants.{{cite web|url=http://www.webdevelopmentchennai.in/services-item/web-hosting-chennai/|title=Webdevelopmentchennai.in|access-date=2017-09-13|archive-date=2015-12-22|archive-url=https://web.archive.org/web/20151222143719/http://www.webdevelopmentchennai.in/services-item/web-hosting-chennai/|url-status=dead}}

During 2011 there were reported breaches of British advertising regulations to the Advertising Standards Authority.{{cite news|last=Yiannopoulos|first=Milo|title=Groupon's image problems spread to Europe|url=https://www.telegraph.co.uk/technology/social-media/8413336/Groupons-image-problems-spread-to-Europe.html|publisher=Daily Telegraph|access-date=2 December 2011|location=London|date=March 29, 2011}} In December 2011 the Office of Fair Trading (OFT) launched an investigation into Groupon after the firm broke regulations 48 times in 11 months.{{cite news|url=https://www.bbc.co.uk/news/business-16000648|title=OFT launches investigation into Groupon advertisements|access-date=2 December 2011|newspaper=BBC News|date=2 December 2011}}

The OFT concluded in March 2012 that Groupon was in "widespread breaches" of UK consumer laws{{cite news|title=Groupon guilty of 'widespread' breaches of consumer protection laws|url=https://www.theguardian.com/media/2012/mar/16/groupon-breaches-consumer-protection-laws?newsfeed=true|work=The Guardian|access-date=16 March 2012|date=16 March 2012|location=London|first=Mark|last=Sweney}} and were ordered to "clean up their practices" within three months including ensuring its website was accurate, realistic, claims related to any beauty or health products offered were substantiated and that refund and cancellation policies were in accordance with current regulations.{{cite news|title=Groupon ordered to clean up practices by OFT|url=https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9148108/Groupon-ordered-to-clean-up-practices-by-OFT.html|work=The Telegraph|access-date=16 March 2012|date=16 March 2012|location=London|first=Alan|last=Tovey}}

The agency filed the lawsuit after a series of faults in the delivery and conditions of products and services sold to consumers.

In August 2016, the disagreements between the Chilean National Consumer Service (Sernac) and Groupon were evident. Both decided to raise a collective mediation for a series of questions that the entity dependent on the Ministry of Economy by groupon for the services of the virtual platform. In spite of the negotiations, the negotiations did not arrive at good port. And a few days after Christmas, Sernac filed a class action lawsuit against Groupon.

According to the agency, Groupon breached the conditions offered and contracted with consumers, in particular, due to non-compliance with deadlines offered and committed for the delivery of products or services. It even accuses it of not delivering the items purchased by consumers, with the consequent unilateral cancellation of purchases or having offered products and services without stock available.

This is compounded by the fact of dispatching articles of less value to the acquired or sending another product to the purchased, defaulting promotions and offers, "without respecting discount coupons offered and purchased by consumers," reads the lawsuit filed before the 18 ° Civil Court of Santiago.

According to information revealed by Sernac in the judicial action, during 2016 the service received numerous claims against Groupon. As of December 20, these totalled 1,958, which resulted in legal action. "The defendant incurs a serious violation of the Consumer Protection Law, violating the basic and irrevocable right, which is the right to truthful and timely information that assists every consumer," said the letter.{{cite news|title=Sernac demanda a Groupon|url=http://www.america-retail.com/chile/chile-sernac-demanda-a-groupon-por-incumplimientos-tras-sumar-casi-2-000-reclamos/|work=America Retail|access-date=7 August 2017|date=20 January 2017|location=Santiago, Chile}}

In May 2010, Groupon created a challenge to live on Groupons for one year. The contestant Josh Stevens travelled throughout the United States and to the United Kingdom and purchased all food, drinks, travel, entertainment and more from Groupon for 365 days. At the end of the year, he received a prize of $100,000.{{cite web|last=Wolinsky |first=David |url=http://www.nbcchicago.com/blogs/inc-well/365-Day-Live-Off-Groupon-Challenge-Draws-to-a-Close-121559884.html |title=365-Day "Live Off Groupon" Challenge Draws to a Close |publisher=NBC Chicago |date=2011-05-10 |access-date=2013-07-04}}

• Friend Me, a CBS sitcom based around Groupon, was created in 2012, but never aired.{{cite web|url=https://www.tvguide.com/News/Alan-Kirschenbaum-Dead-1055180.aspx|title=Alan Kirschenbaum, Co-Creator of Yes, Dear and Friend Me, Dead at 51|last=Abrams|first=Natalie|work=TV Guide|publisher=TV Guide Online Holdings LLC|date=October 28, 2012|access-date=July 27, 2013}}

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