⚡ Industry X-Ray

Startups

What happened to Groupon?

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What Happened: How did Groupon begin?

As The Point, a collective-action site. The Point's group-buying feature took off and became Groupon. Source: Wikipedia – Groupon

Why: Why did growth stall?

Merchants often lost money on deep discounts and didn't return. Deal hunters rarely became loyal customers, so merchants stopped repeating. Source: Wikipedia – Groupon

The Lesson: The lesson?

Both sides of a marketplace must win, or one side leaves. A model that burns suppliers can't last. Source: Wikipedia – Groupon

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