What is Groupon?
Groupon is an e-commerce marketplace founded in 2008 that specializes in connecting subscribers with local merchants by offering activities, travel, goods and services at a steep discount. The company operates via a deal-of-the-day business model where registered users can purchase Groupon voucher deals for fun local experiences and products.
Groupon works by partnering with local businesses which are looking to acquire new customers. These businesses offer deals through Groupon that the company then markets to its large base of subscribed users. By offering exciting deals on enjoyable local activities and services, Groupon drives new customer traffic and business to local companies. Consumers who purchase Groupon deals enjoy experiences like dining, recreation, spa treatments and more at significant savings, thereby incentivizing purchases.
In addition to daily deals and vouchers for local businesses, Groupon also curates personalized deals for users based on their location and purchase history. It also provides a Groupon Goods ecommerce marketplace where users can purchase discounted merchandise. As of 2020, Groupon had well over 40 million active customers in 15 countries using its web and mobile platforms to discover and redeem outstanding local deals.