Groupon distancing itself from rivals: CEO

Dec 01, 2011
Groupon chief executive Andrew Mason said Wednesday in his first comments since the online daily deals site went public that he believes the company is distancing itself from its rivals.

Groupon chief executive Andrew Mason said Wednesday in his first comments since the online daily deals site went public that he believes the company is distancing itself from its rivals.

"There's no doubt the barriers to entry are very low" in the online coupon space, Mason told at a technology conference sponsored by in Arizona which was streamed over the Internet.

"We've had literally thousands of Groupon competitors launched around the world," Mason said. "But the data shows with equal certainty that the barriers to success are very high."

The competitive landscape saw an "inflection point" in the third quarter of the year, he said.

"The largest competitors have either dropped out of the space altogether, reduced their participation in the space or had flat growth or negative growth," Mason said.

"We feel like we've reached this point where our greatest competition is ourselves," he said. "That's what the data says."

Mason said Groupon has "10,000 people around the globe who are talking to tens of thousands of merchants every single day.

"Our scale, our brand, our customer service and our merchant service, and increasingly the technology that we're developing, is the core of what allows us to break away from the pack of competitors," Mason said.

Mason's remarks were his most extensive comments since Groupon emerged from the "quiet period" mandated by its .

Groupon raised $700 million in the biggest by an since , which reaped $1.7 billion when it went public in August 2004.

Groupon shares were listed on the at $20 on November 4 and climbed as high as $31.14 on the first day of trading.

They slipped below the list price last week, however, but gained 9.31 percent on Wednesday to close at $17.50.

Groupon, which rejected a $6 billion offer from Google a year ago, has enjoyed phenomenal growth since its founding in 2008 but has been dogged by questions about its business model and accounting methods.

Groupon, which is present in 175 North American markets and 45 countries, reported a net loss of $308.1 million for the first nine months of this year compared to a loss of $77.7 million during the same quarter last year.

Revenue soared to $1.1 billion in the same period from $140.7 million a year ago.

Internet giant Google and LivingSocial are among the firms offering online discounts similar to those proposed by Groupon.

Explore further: AOL to feed more video, news to Microsoft's MSN

add to favorites email to friend print save as pdf

Related Stories

Groupon shares soar after $700 million IPO

Nov 04, 2011

Groupon shares soared on Wall Street on Friday after the online daily deals sensation raised $700 million in the biggest initial public offering by an Internet company since Google.

Groupon files for IPO, seeks to raise $750 million

Jun 02, 2011

Rapidly growing online coupon seller Groupon Inc. is offering its most tantalizing deal yet - an initial public offering of stock likely to intensify a debate about whether an investment bubble is forming ...

Top Groupon exec jumps back to Google

Sep 24, 2011

Groupon revealed that the startup's chief operating officer was leaving after just five months for a job at her former employer -- Google.

Groupon bargain service taps ex-Google exec

Apr 22, 2011

Online bargain hunter Groupon announced the appointment of former Google executive Margo Georgiadis on Thursday, saying she would oversee global sales, marketing and operations.

Recommended for you

What's PayPal's first solo move?

1 hour ago

PayPal's impending split from long-time partner eBay Inc. will ratchet up its appeal to online retail competitors such as Amazon.com and give it the freedom to aggressively take on new mobile pay challeng ...

AOL to feed more video, news to Microsoft's MSN

6 hours ago

AOL will provide Microsoft's MSN with more video and additional news stories from popular sites such as The Huffington Post and TechCrunch in an expansion of a deal aimed at selling more digital advertising.

Microsoft to tap $2-trillion Indian cloud market

10 hours ago

Microsoft announced plans Tuesday to offer its commercial cloud services from Indian data centres as it seeks to tap what it calls a $2-trillion market in the country where Internet use is growing rapidly.

User comments : 0