Does Amazon Own Groupon? – know more

Does Amazon Own Groupon?
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The rise of modern technology and the path towards digital transformation has given birth to many business centers across the world. There is an increasing number of e-commerce websites, market domains, and online retail applications fueling the business domain to great heights. The main purpose behind establishing a successful business is to cater to customer requirements and their policies. The customer mindset is driven towards receiving discounts, benefits for various services, benefits to students, and availing coupons. One of the largest retailing companies that provide coupons and services to customers whilst allowing them to save money is Groupon services. Groupon is one of the most talked-about e-commerce retailing platforms distributed around the United States. Another big name established in the e-commerce department that has been faring well and considered one of the topmost chains is Amazon.

Partnerships of amazon

It is an undeniable fact that Amazon is the pioneer in starting a good e-commerce industry that followed up to become one of the leading giants in the e-commerce and sales industry. A big add-on to amazon is the partnerships it holds with many already established companies and retail chains.It has exponentially grown to become a huge potential e-commerce domain. Amazon has stepped a notch ahead by partnering with Groupon. 

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Does Amazon own Groupon?

The answer is a plain ‘no’. The intentions of Amazon are beyond the acquisition of ownership at any franchise. It is much more about partnering with Groupon rather than owning it.Though multiple chances are supporting the fact that Amazon could buy Groupon, it is highly unlikely for the same to happen.Groupon which was initially started in 2008 has now grown to become a fully-fledged company having a hold of at least 50 million active users.But as hard as the reality hits, Groupon which was once considered the fastest-growing company according to Forbes magazine has taken a tilt to become out of business and received a major downfall.Today, due to lack of sales and downfall in marketing compared to the first initial years, Groupon is withering away.

The chain of partnership 

  • During the initial phase of Groupon’s establishment, a giant company like Google attempted to buy Groupon and hold it into its custody.
  • Though this deal was not successful, it surely put a company like Groupon on the maps as the company went public with a self-valuation and attracted giant e-commerce behemoths like Amazon for a good deal.
  • LivingSocial was considered a tight competition to Groupon was partly owned by Amazon as the former was invested by Amazon for a decent deal.
  • But soon enough LivingSocial was considered a minuscule company because of the downfall of sales and was acquired by Groupon for an undisclosed sum.
  • The amazon dealership with Groupon began soon after the rejection of the Google acquisition and has been faring well since then.
  • Having around 6000 employees working around offices across Europe and the United States, Groupon has been a major retail factor for a huge e-commerce giant like amazon.
  • During the initial period of starting the company, Groupon was flourishing with a good start, especially after the introduction of the concept of daily deals to online consumers, where the sales pitched was raised over the roof at around $16 billion which was considered as a much attractive base for any company to hold a share.
  • But unfortunately, the company saw its downfall and now stands at just $2.4 billion valuations and is now looking for major shareholders for a good patch.

Considering the revenue numbers, it surely makes sense for a company like Amazon to own Groupon, it is stepping behind in doing so because considering the risks involved.However, there are franchises of Amazon considering the option to buy Groupon. For instance, the French startup of Amazon is doing well and has seen good growth in sales and commercial marketing. This might be a good enough reason for the same to partner up with Groupon or maybe gain the ownership of Groupon. The reason is to increase sales and to advertise more whilst having a good hold.

What are the benefits for a customer from this partnership?

Though there are several views on how the partnership has been projected, the add-on at the end is the customer’s point of view.The advantage of this dealership is that the customers can enjoy both the services of amazon as well as Groupon in addition to many other deals. Groupon Coupons has provided offers in buying items such as electronic accessories that includes Fire TV sticks, echo smart speakers, ring video doorbells, and emphasizes more on providing offers on companies such as Apple, Roomba products and goods. Alongside, there are many other deals on grocery shopping too that the customers can avail.

Conclusion

Considering the ups and downs faced by a startup like Groupon, tying with amazon has been doing well at both the ends and for a better customer reach, despite any future predictions.Also, Groupon had a good public net cap of around 13$ billion when it initially went public. But today it stands at around one-third of the share, owing to a big downfall.

Does Amazon Own Groupon? – know more

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