Andrew Mason launched Groupon in Chicago in 2008 as an online-deal company.
The business grew from The Point, a platform Mason had created to organize collective action. A side project called The Point’s “tipping point” deals offered discounts that activated when enough people purchased, creating the group-buying model associated with Groupon.
Groupon’s first deal was a discounted offer for pizzas at a restaurant in Chicago. The company’s name combines “group” and “coupon,” directly describing its original business model.
Groupon is sometimes confused with Priceline because both operate in online commerce and travel-related offers. Priceline was founded by Jay S. Walker in 1997, whereas Groupon began with Mason’s Chicago group-buying concept in 2008.