Groupon

Groupon's journey began with a simple yet powerful idea that emerged from founder Andrew Mason's frustration in 2006 while trying to cancel a mobile phone contract. He envisioned a way to harness the collective bargaining power of many individuals. This led to the launch of The Point in 2007, a web platform designed to rally people around a common cause or goal, leveraging social media to achieve a 'tipping point' for action. While The Point saw modest traction, a particular group of users in Chicago sparked a pivotal shift: they wanted to band together to save money by purchasing the same product in bulk to secure a group discount. Recognizing this potent demand, Eric Lefkofsky, an early supporter who provided $1 million in seed money, encouraged a pivot to focus entirely on group buying.

Thus, Groupon – a portmanteau of 'group' and 'coupon' – was officially launched in November 2008. Its inaugural deal was a charmingly straightforward offer: two pizzas for the price of one at Motel Bar, a restaurant conveniently located on the first floor of their Chicago office building. This decision to concentrate on group discounts proved to be incredibly astute. The concept resonated deeply with consumers and local businesses alike. In a remarkably short span, Groupon experienced explosive growth. What started as a small team of a few dozen blossomed to over 350 employees within just a year and a half. By October 2010, Groupon's reach had expanded dramatically, serving 150 cities in North America and 100 cities across Europe, Asia, and South America, boasting an impressive 35 million registered users. The company's innovative model of connecting subscribers with local merchants by offering enticing deals on activities, travel, goods, and services had firmly taken root, transforming the landscape of local commerce and establishing Groupon as a significant player in the burgeoning e-commerce world. This rapid ascent culminated in a major milestone when Groupon went public in November 2011, marking one of the largest IPOs by an Internet company since Google's debut in 2004.

Over the years, Groupon has continued to evolve, navigating the dynamic digital marketplace. While initially focused on daily deals with a 'tipping point' mechanism, the platform has broadened its offerings to include a wider array of coupons, cashback opportunities, and direct-to-consumer goods and travel packages. The company has weathered economic shifts and increasing competition by adapting its strategies, including international expansion and acquisitions. Despite facing challenges and undergoing leadership changes, including the appointment of Dušan Šenkypl as CEO in March 2023, Groupon remains committed to its core mission: to be a trusted local marketplace where consumers can discover new experiences and services that enrich their lives, and where local businesses can thrive by reaching new customers. Headquartered in Chicago, Groupon continues to connect millions of users with deals in numerous countries, striving to pump billions into local economies and help consumers save significantly.