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Stat of the Day: Groupon Now Only 1% of Groupon's Revenue

Will Slow Adoption and Deal Mix Hold Back Groupon's Growth?

By Published on . 1

With Groupon's IPO finally happening, we should start getting more public data from the company directly, but in the meantime we have an interesting analysis from digital agency Beyond and deal aggregator Yipit. The data shows some big challenges moving forward with Groupon Now (aka Groupon 2.0). Despite a big marketing push, the hyper local deals seem fundamentally likely to be a small part of the overall Groupon revenue picture.

Unlike Groupon's flagship email product, Groupon Now deals are largely driven by the lower-revenue dining deals. It will take a ton of volume to make up the balance compared to the apparel, spa and services deals that have helped fuel Groupon's growth.

Considering that revenue from Groupon Now is already slowing, it's hard to see that happening anytime soon.

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