From daily deals to daily habits
For a few years now, Groupon (GRPN) has sought to reposition itself as it seeks more success. The company has mainly sought to change its trajectory from a daily deals email pusher to a daily habits local e-commerce platform.
Though repositioning itself as a local e-commerce provider may unlock a more prosperous future for Groupon, the shift also means it has come into more direct competition with Amazon (AMZN), eBay (EBAY), and Yelp (YELP) in the battle for local shoppers and vendors’ attention.
Last month, J.P. Morgan (JPM) hosted Groupon executives at its technology, media, and telecom conference. Speaking at the conference, Groupon CEO Rich Williams discussed the company’s repositioning and what the shift means for consumers, merchants, and the future of the company.
Groupon as a utility in consumers’ life
According to Williams, Groupon wants to be the go-to-place for consumers when they’re hungry or bored, helping them discover amazing things around them.
Williams sees Groupon emerging as a kind of utility in consumers’ everyday lives. By building a strong local presence, Groupon hopes to drive more value to its merchant customers because it says most people spend their time and money shopping locally.
Groupon served 48.3 million users globally as of the end of 1Q17, with ~32.0 million of those users living in North America. The company had 44.2 million global active users in 1Q16. The chart above shows how Groupon’s user base has changed in the past few quarters.