UPDATE: Groupon’s complaints have increased dramatically over 2012. Numerous websites have published articles on this:
Groupon’s page on HelloPeter
https://www.hellopeter.com/groupon-sa/customer-feedback-and-analysis
MyBroadBand.co.za:
http://mybroadband.co.za/news/internet/55233-groupon-sa-complaints-flood-in.html
VentureBurn / MemeBurn:
http://ventureburn.com/2012/07/is-there-a-solution-to-groupons-sa-woes/
Court action in the UK:
http://gigaom.com/2012/03/16/groupon-uk-told-to-clean-up-after-record-complaints/
Groupon in court in SA:
http://www.asasa.org.za/ResultDetail.aspx?Ruling=5534
This webpage:
http://www.groupbuying.co.za/complaints
Groupon apologises on ITWeb:
http://www.itweb.co.za/index.php?option=com_content&view=article&id=57188:dear-disgruntled-groupon-customer&catid=69
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Groupon logo
Of all the group buying websites, Groupon has received the most publicity, both good and bad. And rightly so – Groupon has done some amazing things for social commerce in general, and also made some horrid mistakes. All part and parcel of the world’s newest industry gaining its maturity.
Global history
First of all, it should be added that this website focuses on group buying in South Africa, and so any history and news of Groupon overseas will be brief. Groupon started in the US in November 2008 and quickly started amassing subscribers. Being the first in the industry to really create hype around the idea, it took off quickly and Groupon has since been put forward as the fastest growing company in the world (although this is not necessarily a positive comment – growing too fast is bad for business).
During 2011, Groupon put forward to be listed on the New York stock exchange and ran for an IPO. This IPO process is still not complete, and after a slew of bad press and a renewed submission of documents with different financials, some say that it will not go ahead at all.
Groupon in South Africa
Nevertheless, Groupon has grown fantastically fast and sell the most coupons. In South Africa, the website Twangoo was started by two entrepreneurs with very little or no online experience, and through tenacity and hard work brought the website to the point where Groupon wished to buy it. After it was bought, the groupon.co.za domain took a while to buy from Wicount, who had first registered it.
The move was perfectly timed, since South Africa was just starting to become aware of group buying, and also Twangoo was listed as a spammer in South Africa. The new domain started the business from afresh and the company could continue with the correct procedures in place. For a while Groupon operated as MyCityDeal
All the while, it must be noted that Groupon in South Africa has always been operated and run by Twangoo South Africa, as stated in their terms and conditions. Groupon has faced a lot of criticism from competitors, similar to any company at the top of its industry. This has seemingly made it stronger and it now boasts a full call centre, a sales team, a marketing division and solid technical expertise.
Myths about Groupon:
(sent in by a reader)
- Groupon was not the first group buying website online. That honour belongs to Mercata. Groupon often calls other websites “clones”, but this is simply very clever marketing.
- Groupon is not the top group buying website in every country it exists in. In South Korea, for example, Groupon has never been in the top spot. Worldwide, however, Groupon is still the biggest, with LivingSocial close behind.
- Groupon does not always require a minimum number of buyers higher than 1. Many deals are tipped from the first purchase, and this adds depth to the great deals that Groupon offers.
- Andrew Mason, a co-founder of the company, owns Groupon. Actually there are numerous investors and some that have even been paid out already.
The fact remains that Groupon is an amazing company, and has led the industry for some time with the way it has marketed and driven the group buying scene globally. Whether it will stay that way in the future will remain to be seen, and it’s IPO in the United States will definitely have an impact on what transpires next.
Here is a good look at the Groupon.co.za website, which launched in August 2011. It naturally mimics the overseas holding company’s look and feel.
Groupon's website, still showing MyCityDeal in the logo
Should you wish to comment on Groupon internationally or in South Africa, please do so below.
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Laura Bruckmann11-18-11
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Dealify closes down | Group Buying South Africa12-06-11
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My experience with groupon has been nothing but an absolute nightmare, I have a small business and signed a contract for them to place my ad, they changed my price without my consent, and when I confronted them about it they had advised that my price of R150 for a massage and nail treatment was too much, I had already given a 70% discount. They promised my ad to go on a certain day which was agreed only to find on that day it was not put on, this happened 3 times, I tried calling them, after holding on for 20 minutes I hung up in frustration, I emailed 2 different people from groupon 3 times, no reply, I emailed again to cancel still no reply, so you see in essence groupon doesent care a dam about the businesses they promoting nor do they care for the buyers, they are marketing themselves, not even doing the hard work, and making the most money, while us business owners work at a major loss, in false hope of bringing in new clientele.
I find it shameful, and I am so angry that groupon wasted my time for the last 2 weeks, I could have been on another coupon site by now. Seems even my complaining will get me nowhere as there are thousands of complaints about them everywhere, and more complaining that they just do not get back to you or your complaint.
Companies like this should be controlled or SHUT DOWN.
Restaurant deal bought:
3 of us each bought a Smith & Wollensky voucher for R189.00 each. On Friday 18th Nov we decided to treat ourselves and used 2 of our vouchers = R 378.00. What a disgusting meal and bad service we encountered at Smith & Wollensky Eastgate. Surely these restaurants are screened before you sell a product to the public. We still have 1 voucher for R 189.00 but most reluctant to go back as the food is not edible at all and service most disgusting.
Would it be opossible that I can exchange this voucher for another deal??
I await your reply
AMEN TO THAT!!!
Just to give you a bit of feedback on my Groupon experience.
I recently also bought a Groupon for dinner at Smith & Wollensky Steakhouse – Eastgate. Very excited, I decided to make a day of it with my wife.
I was, however, very disappointed at the level of service I received. It seems that all “Groupon” customers got second grade service.
First of all, some elements of the five coarse meal was absolutely horrifying, ill prepared, not well presented.
You would expect a bit more effort in preparing a meal for potential regular customers.
The waiters got the most basic of orders wrong.
The gentleman behind the grill was often not at his post, leaving guests wondering around.
NO EFFORT what so ever was made in preparing a basic salad?????? Really??? we talking about leaves here…..
The Onion soup was so salty u could preserve a rotten corpse in it for at least a decade
And the sickest of all, a chunk of onion in my “Malva Pudding” (if that’s what they call it nowadays),
I couldn’t help but get the feeling that we were actually being treated like “freeloading cheapskates” who needed to sit, eat and leave.
I know what good food tastes like, this, was not good food.
I don’t even want an apology from them, in fact, I wouldn’t want to touch ANYTHING they make with a stick….
This has definitely put me off any kind of food related Groupons and changed my perspective on Groupon as a whole.
Businesses participating in Groupon SHOULD give the BEST POSSIBLE QUALITY to groupon customers…… how in the world will they ever
Expand their client base
Smith & Wollensky should come for cooking lessons from my wife at home, which is probably where we should have stayed.
What a waste of space and energy they are
I’m sorry that this may sound very blunt, distasteful, bland and outright rude, but it has nothing on Smith & Wollensky Steakhouse
I purchased a brazillian keratin hair treatment from groupon,Ive contacted ” SmilesSpa ” to collect and track my order but been promised i should receive it next week ,then the folowing wednesday etc, etc.I have great views about Groupon but if they deal with dodgy companies like SmilesSpa then not long before everyone spreads the word that its all a scam and bYe Bye Groupon.Service in S.A is one of the worst in the world already and we quite backward compared to other countries in online orders and this chance with groupon to change this is been waisted,seems like its more trouble than anything rather pay full price and stop receiving groupon emails.
Groupon suck, they sold me a cellphone package that cost me so much more than getting it straight from Vodacom, i have stopped using them and now using dealclick.co.za.
These guys are fantastic, try them, you won’t be disappointed.
Groupon is currently running a massive fake medical scan scam at the moment.
Read: http://bit.ly/AjrLdy
We bought the “fantastic” deal of a holiday in a stylish resort in Zansibar. It was horrific!!!! Accommodation was far below standard and the food basically non-existent!! It was definitely false and misleading advertising. We emailed a complaint but received NO feedback!! Groupon is a definite NO NO NO !!!!!!!
I bought a digital photo frame through groupon as a birthday present for my daughter. W e have difficulties with it and I want tto return it to the dealer, bu receive NO replies on my e mails to groupon and no one answers the customer service phone. I am really dissapointed with their service afterwords
I bought a half-day spa groupon for R599 thinking what a bargain but I can’t get a booking. They are always full. When phoning in they say apparently I can extend the voucher with Groupon but Groupon Service are just ignoring me like a stop street. No extension and it’s going to expire. What a waste of R599. If I wanted to give my money away I’d donate it to a charity.
Groupon sucks!
I bought persian rugs off Groupon and when trying to call the number on the voucher I got no answer. I tried calling for over a week and then eventually trying to get hold of Groupon they did not respond to any of my emails, now I want a refund and still no replies. Upto know I have 11 emails over 2 weeks and there is no response. I am super suprised with this level of service and so i am going to be paying them a visit at 12 Loop Street Cape Town- they have much explaining to do.
Hi would you kindly contact me on the above email address, I would like to assist you.
Thank you
PLEASE CAN ANYBODY HELP ME TO UNSUBSCRIBE FOR THE GROUPON E_MAILS!!! I CANNOT STAND IT ANYMORE AND THE LINK IN THE MAILS DO NOT OPEN ANY WHICH WAY!!!! DIRECT ONE TO THE UNSUBSCRIBE ADDRESS _ NADA!!!!!
I purchased a Groupon for a spa experience at Zen Fusion. I was disappointed to have experienced terrible service from them.
I purchased their products only to have messages passed with the receptionist because the lady was too busy to explain how it works…my apologies if I was not in the race group they expected to get business from.
And people wonder why these companies cannot keep their customers or get any for that matter.
I too bought a digital photo frame like Marina vd Westhjuizen above which also does not work upon receit. Efforts to get hold of Groupon are fruitless. I too want to unsubscribe! but where does one do this! This company should not be allowed to operate, they have not customer service. One spends hard earned pension money only to find, a company like Groupon is failing in their mission.
Please STOP all communication from Groupon to me
Regards Johan Vermaak
Hi there,
I bought 3 coupons for the Sheikh Palace yesterday, but still have not received any vouchers. Please advice how this works as it is the first time I have used Groupon.
Thanks in advance
Wendy
I ordered iphone supplementary lenses more than two months ago. I have never received them. Despite umpteen cals and waiting on the line for long periods. I am fobbed off by one excuse after another. I have emails from managers promising delivery dates. They are just liars and hope you will jus go away. I warn everyone to not be taken in by their empty promises.
On the 04th September 2012 I bought the voucher for LUXURY SPA FOR TWO at the Barn. On the very sane day I emailed the proof of payment to groupon and the Barn Spa. The Barn comeback to me we arrange for the spa treatment and they requested the voucher of which I dont have.I have not received feebcack form you guys. I send the email and you replied saying the voucher has expired it was suppose to be send within five working days of which I did that. Can you please try to give me the voucher as this is not my fault I did send the email to you guys.
Regards
Jessica
0827742198
PLEASE CAN SOMEONE FROM GROUPON SA PLEASE CALL ME ON MY MOBILE 0829253846 YOU ARE NOT RESPONDING TO EMAILS EITHER…
SARAH SINGH
I bought a full day spa package for two from Groupon On trying to redeem it, I found it had mysteriously turned into a 4 hour spa package. I have now spent 2 weeks trying to deal with their call center (another lie as they don’t know what a phone is) Still no luck. What a bunch of thieves
Dear Groupon
I have bought a voucher for a Spa-treatment but apparently the business has been closed down. Is there any way to get refund for the purchase? REF: 9847756 (Security code 8C8D657C46) Voucher Code : 21/5151
Please advise.
Thank you
Just another case of pure daylight robbery of uninformed consumers with blatent lies.
http://www.groupon.co.za/deals/national-deals/Groupon-Goods-GW/11919937
http://www.ontheinternet.co.za/Toys.aspx?code=PVPGC&Product=PVP%20Games%20-%20Game%20console&Cat=Toys
I’ve been trying to get hold on groupon for weeks! Number 60 in line when I call and I’ve YET to receive a response via email…. Seriously jack up your system !!!!
i was always 27 in line.
I would like to register as a seller on groupon please help with the link. email or sms me on 0784911220
I emailed Groupon about the Cotex Tablet. I nedded information abiout the product. but.no one bothered to reply and now i lost out on the deal. Thanks Groupon
It’s easy to see why Groupon USA is going to the wall if Groupon SA is modelled on it. There is an avalanche of ineptitude behind every order. They seem to get the straight coupons right – where your relationship is directly with the supplier and you redeem the coupon directly – because there’s precious little for them to do beyond the role of smalls advertising – but heaven help you if there’s a logistical workflow involved. Additionally, they don’t have a clue when it comes to customer communications, despite all the cutesy (and just plain irritating) fantasy role language, which must have cost something in communications design. One gets the impression that the franchise is owned and “run” (if that’s not too generous a term) by spoilt kids with the money but absolutely no business sense at all.
Groupon does not have the correct details of the advertisments they place. I have bought a voucher but the contacts details was incorrect. The place was a scam. Groupon must first check if the info given to them by the company that advertise is correct
Wag ook steeds vir my bestelling van twee orthopediese kussings, geplaas op 17 November 2012. Alle navrae lei steeds tot niks!
Purchased a voucher for 2 for cafe 41 rigel ave pretoria. Calamari starter had 20% calamari and 80% potato salad. Awful taste. Groupon should get its act together and make sure of quality control or lose another customer.