Industry - - Nov 17,2016
American global e-commerce marketplace Groupon has closed its services and website in South Africa. According to Groupon, that deals are frequently not lucrative for them and they attract the wrong kind of clients who are not spending money on the coupons. On Friday morning when consumers in South Africa tried to access the Groupon website, the website greeted them with an apology message: “We are sorry to inform you that as of November 4, 2016, Groupon has wound down its operations in South Africa and we are unable to offer you any deals today.”
American e-commerce Company was offering travel, activities, goods and services in almost more than 28 countries. In South Africa, Groupon offered discounts on goods, as well as on the getaways, restaurants and some adventure activity services. Recently in the month of October, Groupon Inc. purchased its rival LivingSocial Inc. for an undisclosed amount. Groupon Inc. posted its third-quarter result in which company displayed a $35.8 million loss, but said that the operation of North America was enough strong and good. According to the posted result, the unit sales rose up 4% in North America, while in the Middle East Africa and Europe regions the unit sales fell 8 percent.
Groupon said on its websites that vouchers bought before November 4, 2016, would remain valid until their expiration dates, Groupon also proposing its customers who were not happy with spending their voucher they have another option of returning it and also get cash voucher until November 30, 2016. According to the website, the goods purchased up to the 4 November will be rewarded; customers need to return any item which they have purchased before November 30. Groupon Inc. was providing its discounted deal services in South Africa since the year 2010. This news was also prominently discussed on the internet and social media sites reacting as “Bye Bye Groupon” tagline.