Groupon, a global e-commerce marketplace, has revolutionized the way people shop and businesses market their products and services. The platform connects subscribers with local merchants by offering activities, travel, goods, and services in 15 countries. This article delves into the background of Groupon, its founders, revenue generation, and more.

Background of Groupon

Founded in 2008, Groupon was initially a part of The Point, a platform for collective action and fundraising. The idea was to leverage the power of group buying to get discounts on products and services. The concept quickly gained traction, and Groupon became a separate entity, focusing on offering daily deals to consumers.

The Founders

Groupon was co-founded by Andrew Mason, Eric Lefkofsky, and Brad Keywell. Mason, a graduate of Northwestern University, initially developed The Point before pivoting to Groupon. Lefkofsky and Keywell, both seasoned entrepreneurs, provided the initial capital for Groupon and played significant roles in its growth and development.

Revenue Generation

Groupon generates revenue primarily through the sales of services and products on its platform. When a customer purchases a deal, Groupon retains a certain percentage of the sale, and the rest goes to the merchant. The exact percentage varies depending on the agreement with each merchant.

Groupon’s Business Model

Groupon’s business model is based on a win-win approach for both consumers and merchants. Consumers get to discover new products and services at discounted prices, while businesses get to attract new customers and generate sales. This model has proven to be successful, with Groupon boasting millions of active users worldwide.

Expansion and Growth

Since its inception, Groupon has experienced significant growth and expansion. In 2010, it expanded internationally, acquiring several similar deal-of-the-day websites in Europe and Asia. Today, Groupon operates in several countries, including the United States, Canada, Brazil, Germany, France, the United Kingdom, Italy, Portugal, and Spain.

Challenges and Criticisms

Despite its success, Groupon has faced its share of challenges and criticisms. Some businesses have complained about the high commission rates, while others have questioned the quality of customers attracted by the deals. Additionally, Groupon has faced competition from other deal sites and changes in consumer behavior.

In conclusion, Groupon has significantly impacted the e-commerce landscape by introducing a unique business model that benefits both consumers and merchants. Despite facing challenges, the company has managed to maintain its position as a leading deal-of-the-day website. Its story serves as a testament to the power of innovative ideas and the importance of adapting to market changes.


Alex likes to write about anything related to technology, marketing and gadgets. He sometimes reviews the latest tech and also writes on other blogs.