Who are the main competitors of Groupon?

Groupon Inc. (GRPN) has experienced difficult development since its initial public offering (IPO), as competition in online retail and coupons has heated up. The company went public at a price of $20, but as of May 2, 2020, its share price had fallen by 94% from its IPO price.

However, Groupon is trying to rebound and has increased profitability in the international market in recent quarters while maintaining its large customer base in the United States. The company’s balance sheet is also quite healthy, with net cash of US$355.8 million and a manageable debt level. Unfortunately, Groupon’s stock has not benefited recently.

In the foreseeable future, fierce competition in the online retail and coupon markets will continue, because Groupon’s competitors have huge resources and penetrate the big market.

Amazon

Amazon.com Inc. (AMZN) is an e-commerce giant with a market value of close to one trillion U.S. dollars. Amazon’s flagship service, Amazon Prime, helped the company dominate the online and mobile markets. Prime provides its subscribers with two-day delivery service throughout the United States, and even same-day delivery service for applicable products.

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In addition to transportation services, Prime also provides streaming services from Amazon movies, shows, and music libraries. It provides users with the service of reading photos and other media from its e-book library and cloud services at an annual fee of US$119. It is estimated that Amazon has more than 150 million major subscribers. Over the years, Amazon’s success in Prime, services and e-commerce products has driven the company’s stock price up.

Walmart

After acquiring Jet.com for US$3.3 billion, Wal-Mart Inc. (WMT) continued to further expand into the online and mobile markets to attract shoppers who want to save money. It not only further invaded Amazon’s territory, but also further invaded Groupon’s territory. Like Amazon, Wal-Mart provides a range of services in addition to its e-commerce platform.

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Wal-Mart’s network of stores in the United States allows customers to pick up the goods they ordered online on the same day, and the company provides two-day free shipping for its online customers. Walmart also has a mobile payment platform, Walmart Pay, which is used to provide discounts and gain insight into shoppers’ preferences.

Lotte

Rakuten is another popular company that online shoppers use to save money on purchases. Similar to Groupon, individuals can install Chrome extensions or browse websites and get cash back on popular websites after checkout. Rakuten does not pre-purchase discounts, but allows consumers to directly save money and receive discounts at checkout.

Retail i don’t

RetailMeNot Inc. (SALE) is much smaller than Amazon, Walmart and even Groupon. Amazon’s market value is close to 900 billion U.S. dollars, and Wal-Mart exceeds 275 billion U.S. dollars. RetailMeNot was acquired by Harland Clarke Holdings for US$630 million in 2017.

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The smaller RetailMeNot connects retailers, restaurants, and other businesses with customers by providing its users with digital coupons for products ranging from electronics and food to beauty products and clothing. The company acquired LowestMed in May 2018 and entered the field of prescription drug savings. LowestMed is a service that enables consumers to research and compare the prices of prescription drugs.

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