Super-saver site on the decline
Remember when Groupon was huge?
I do. I remember when out of nowhere my buddy started asking me to go kayaking, skydiving, hot-air balloon flying and sushi prepping. Why? Because it was cheap, not because he actually wanted to do any of it.
That’s what happened to a lot of people when Groupon first hit the spotlight. All of a sudden people could find deals on travel, restaurants, cosmetics, you name it. It helped a lot of smart shoppers (that’s what they like to call themselves) download Groupon’s app and save. Save, save save. It was a hit. Enough of a hit to spur hit TV shows like Extreme Couponers.
But now Groupon seems to be proving a fad. And what does that mean for its future?
Launched in November 2008 out of Chicago, Groupon, at its peak, had over 50 million registered users in 48 countries worldwide. Forbes even wrote an article about the upstart called “Meet the Fastest Growing Company Ever”.
Now, Groupon’s stock prices are indicating a fleeting hysteria. Between market competition and alleged unethical business practices, Groupon’s shares are down $25.14 from their 52-week high with today’s high at $6.
After its launch and quick profits, Groupon of course spurred a litany of competition. LivingSocial, Dealfind, Eversave, Half Off Depot, Plum District, KGB Deals, Tippr, Crowd Saving, TravelZoo, Scout Mob, and even CBS Local, among plenty others, all offer a service similar to Groupon. They’ve diluted Groupon’s attention, and are also suffering the consequences.
TravelZoo has also seen a decrease in worth. Its 31,563 market shares’ 52-week high was $47.35, but now sit at $22.52.
In March of this year, Guardian released an article citing Groupon’s shifty business ethics. According to the article, the Office of Fair Trading found “Groupon guilty of ‘widespread’ breaches of consumer protection laws, relating to issues including the pricing, advertising and unfair terms attached to its daily deals.”
With a consistent and considerable decrease in worth, the company’s 643,398,000 shares are now considered “bearish” on Nasdaq.com and don’t imply any future growth.
To combat the decline, the company now offers new features on its site. Its new “Goods” section offers discounts on necessities in one’s area, and its “Rewards” section offers what you’d expect, reward discounts for using the site’s offers.
Groupon’s future is still uncertain, but its recent history and tumbling stock portend future decline and disinterest from its customers. I remember having the app for a couple weeks, but don’t anymore.
If Groupon, the captain of the daily discount market, is plummeting, what does that mean for other discount sites?
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