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The mecca of discounted items, Groupon is a global e-commerce marketplace connecting subscribers with merchants by offering activities, travel and services. And no, it's not too good to be true!
The name for the e-commerce platform, Groupon is a portmanteau of "group" and "coupon". Groupon's first deal was a two-pizzas-for-the-price-of-one offer at Motel Bar, a restaurant on the first floor of its building in Chicago. [10] [18] [19] The decision to focus on group buying proved wise.
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Group buying, also known as collective buying, offers products and services at significantly reduced prices on the condition that a minimum number of buyers would make the purchase. Origins of group buying can be traced to China , where it is known as Tuán Gòu ( Chinese : 团购 ), or team buying .
With Groupon taking 50 percent of every deal, plus a small credit-card handling fee, [9] in late 2010 it was reported by Mashable that Groupon's annual revenue was $800 million. [10] On December 1, 2010, The New York Times reported that Groupon was the subject of a $6 billion acquisition bid from Google , which Groupon turned down.
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