Zero long-term operating leverage. Stagnated business model. Lack of innovation. Little to none business diversification. Weak stock.
Rumor was that they were trying to find a way to go private and didn’t find a buyer.
Their business model is highly susceptible to be disrupted in the low-end by plug and play solutions.
Their advantage was distribution, but companies like Uber have figured out a way to funnel distribution through their on-demand economy channels which basically makes user acquisition cheaper. Other companies like Square have actually forged meaningful relationships with small businesses.
Groupon attractiveness was generating quick demand for small businesses, but nowadays it’s simply easier to go add your business to Uber Eats, Postmates, Doordash, etc.
Non-food businesses which also were attracted by the quick demand have also realized that they can build a more meaningful customer base by using one of the many reward systems vendors or by relying on a specialized POC/management system like MindBody which also gives them distribution.
Groupon is the equivalent to the coupon page in the Yellow Pages. It only makes sense as a feature, not as a company.
It has about as much of a future as yelp, but there are still some interesting projects available for engineering so it's not the worst place to spend a year or two. People are nice and the culture is pretty laid back
Overall it's a sinking ship. Just try to stay away from it. As a developer, I've learnt quite bit working here. Now I'm jumping ship for the following reasons: 1. A new manger every year, some time every half year. The current manager is terrible. 2. Recent reorg is a joke. We had a reorg in December, someone took a a look at the fiscal report and decided to have another one in 2 months. And that's the only time when agile methodology is applied here. 3. Developers are 2nd class citizens. 4. Can you believe a retail business not running on cloud? 5. Nobody cares about innovations, we are busy staying alive. Lots of applications are still running on Java 7, Paython 2.3, Ruby 1.6, and ages old framework. Pain in the ass to setup a new dev machine because nothing works on the new OS. The SOX process, GDPR process, machine setup/configuration process, are all world's worst. 6. I've only experienced this recently: incompetent engineers. Apparently we have to drop hiring bars these days. Very frustrating to work with them
I disagree completely that it happens to every company every year. It only happens in struggling companies every year. Reorgs happen in strong companies too but seldom and when it does happen its usually due to acquisition of another company, new product launch or consolidation.
At Groupon it feels like the reorg is happening to find a solution to lack of growth and perhaps spark growth. I’ve only been at Groupon a few months but I can say that if you’re a strong employee you’ll be fine. Company is struggling for growth but I think will still exists for many years to come as they have become a marketplace and not just a deal place.