Top Competitors Challenging Groupon in the Market
Groupon faces intense rivalry from major players like Amazon, Walmart, and RetailMeNot as they compete for dominance in the online deals and coupon industry.
Since its IPO, Groupon Inc. (GRPN) has encountered significant challenges amid escalating competition in the digital retail and coupon sectors. The company debuted at $20 per share, but by May 2, 2020, its stock value had plummeted by 94% from the initial offering price.
Despite setbacks, Groupon is striving to recover by enhancing profitability in international markets while retaining a substantial U.S. customer base. The company maintains a solid financial position with $355.8 million in net cash and manageable debt levels, although its stock performance remains subdued.
The competitive landscape in online retail and coupon services is expected to remain fierce, with rivals leveraging extensive resources and broad market reach.
Amazon.com
Amazon.com Inc. (AMZN) stands as a dominant force in e-commerce, boasting a market capitalization nearing one trillion dollars. Its flagship subscription, Amazon Prime, has cemented the company’s leadership in online and mobile shopping by offering benefits like two-day shipping nationwide and same-day delivery on select items.
Beyond shipping, Prime members enjoy access to a vast library of movies, TV shows, music streaming, e-books, and cloud storage services for an annual fee of $119. With an estimated 150 million Prime subscribers, Amazon’s comprehensive service ecosystem has significantly boosted its stock growth over time.
Walmart
Following its $3.3 billion acquisition of Jet.com, Walmart Inc. (WMT) is aggressively expanding its online and mobile retail presence to attract budget-conscious consumers, directly competing with both Amazon and Groupon. Walmart complements its e-commerce platform with an extensive network of physical stores across the U.S., enabling customers to pick up online orders on the same day.
Additionally, Walmart offers free two-day shipping for online purchases and operates Walmart Pay, a mobile payment system that provides discounts and gathers consumer shopping insights.
Rakuten
Rakuten is a popular platform for online shoppers seeking savings, functioning similarly to Groupon. Users can install a browser extension or visit the website to earn cashback on purchases from various retailers. Unlike Groupon's upfront discount model, Rakuten provides rebates directly at checkout, allowing consumers to save money instantly.
RetailMeNot
RetailMeNot Inc. (SALE) is smaller in scale compared to Amazon, Walmart, and Groupon, with Amazon’s market cap approaching $900 billion and Walmart’s exceeding $275 billion. Acquired by Harland Clarke Holdings in 2017 for $630 million, RetailMeNot connects businesses such as retailers and restaurants with customers by offering digital coupons across categories including electronics, food, beauty, and apparel.
In May 2018, RetailMeNot expanded into the prescription drug savings market by acquiring LowestMed, a service that helps consumers research and compare prescription medication prices.
Discover engaging topics and analytical content in Company Profiles as of 08-05-2020. The article titled " Top Competitors Challenging Groupon in the Market " provides new insights and practical guidance in the Company Profiles field. Each topic is meticulously analyzed to deliver actionable information to readers.
The topic " Top Competitors Challenging Groupon in the Market " helps you make smarter decisions within the Company Profiles category. All topics on our website are unique and offer valuable content for our audience.