Groupon, Inc. is no stranger to reinvention, but 2026 is shaping up to be a year of especially bold moves for the Chicago-based deals platform. As Valentine’s Day approaches, the company has taken a fresh tack—one that’s as much about microchips as it is about chocolates. On February 6, Groupon’s latest campaign ditched the tired bouquet-and-bonbon combo in favor of gifts with a technological twist. Think Bluetooth gadgets, customizable settings, and buttons galore. According to a report preserved by the press after the original tweet was deleted, this new angle is aimed squarely at the tech-savvy, a demographic that’s grown ever more central to Groupon’s evolving identity.
This pivot is more than a marketing gimmick. As noted in a recent analysis, Groupon’s leadership is steering the company toward becoming a hyperlocal marketplace, with technology as its linchpin. The stakes are high: Can artificial intelligence and platform modernization breathe new life into a business model that’s been battered by changing consumer habits and fierce competition?
To answer that, it’s worth looking at the numbers and the context. In the third quarter of 2025, Groupon reported growth in global gross billings, a positive sign for a company that’s spent years fighting to stay relevant. The local services category, in particular, showed strength, and the “Things To Do” segment outpaced the rest of the business during the summer. The company also managed to attract a substantial number of new active customers—no small feat in an environment where consumer loyalty is notoriously fickle.
But the real test lies ahead. The company is set to release its fourth-quarter 2025 earnings report on March 10 or 11, and market watchers will be scrutinizing every detail. Will the push toward digital transformation and AI integration show up in the bottom line? Are more users flocking to the platform, or is the user base stagnating? And perhaps most crucially for investors, are the efficiency gains from AI—particularly in merchant integration—tangible and sustainable?
Groupon’s technological ambitions are not just about back-end efficiency or shiny new features. The company is investing heavily in platform modernization to forge stronger connections between consumers and local merchants. This is a strategic bet: If successful, it could make Groupon the go-to marketplace for hyperlocal experiences, from spa days to salsa classes, and everything in between. The deployment of artificial intelligence is a double-edged sword, though. On one hand, it promises a smoother, more personalized user experience and the potential to optimize sales conversion rates. On the other, it raises the bar for what customers expect from their digital interactions—and what merchants are willing to offer.
Yet, for all the optimism in Groupon’s boardrooms and investor calls, the reality on Main Street can be a little messier. Just ask Mark Morales, owner of Mozalez Auto Repair in Plant City, Florida. On February 5, Morales took to TikTok to share why he’s decided to stop accepting Groupon deals at his shop. His story, which quickly went viral, shines a light on the sometimes fraught relationship between local businesses and the coupon-driven customers Groupon attracts.
Morales’s breaking point came after a run-in with a customer seeking an oil change for her 5.3L Chevrolet Suburban. The Groupon deal covered up to five quarts of oil, but the Suburban, if newer than 2017, needs almost eight. That meant an extra charge for three quarts at $10 each. When Morales explained this, the customer’s mother called in, unleashing a torrent of accusations and expletives. As Morales recounted, she said, “Just take the money from Groupon and do your mother[expletive] job.”
Feeling insulted and unappreciated, Morales declined to service the vehicle, even after the customer offered to pay the difference. “Thank you; no thank you. I don’t need your money,” he told her. Morales later explained to Motor1 that this wasn’t the first time he’d encountered such behavior, adding, “She’s done it before.”
The incident struck a chord online. Fellow mechanics and small business owners chimed in, many echoing the sentiment that Groupon deals often attract customers who are more trouble than they’re worth. One commenter, NickOfTimeAuto, advised, “I told you man, you don’t want the bottom feeder customers that the majority of those Groupons and specials bring. I’m not just talking, 25 years in business and booked 7-10 days out I’m telling you these people shouldn’t be your focus.” Another user, A Glimpse Into My Life, added, “No one ever reads anything. I deal with this all day. My favorite is when they say you have no idea who I am!!! No sir I don’t know who you are but I don’t have to worry about who you are if you throwing a fit over $35.”
This back-and-forth isn’t just internet drama. It underscores a real tension in the world of deal platforms: the balance between bringing in new customers and maintaining quality service. According to My Florida Legal, “Auto repair rip-offs consistently rank as one of the most common categories of consumer complaints throughout the nation.” The site advises customers to shop around, get quotes in advance, and keep records—advice that resonates in a world where both business owners and consumers fear being taken advantage of.
Morales’s experience also highlights another wrinkle: Even after submitting a request to stop the Groupon campaign, it continued to run. For now, he’s price-matching the deal for anyone who walks in, but the episode has left him wary of the platform’s impact on his business. As he put it, “I have not heard from them or Groupon or seen any bad reviews.”
For Groupon, stories like Morales’s are a reminder that technological transformation, no matter how sophisticated, can’t fully insulate a company from the unpredictable realities of customer service and human behavior. The platform’s future may hinge as much on its ability to foster trust and transparency as on its prowess with AI and digital modernization.
As the countdown to the next earnings report continues, investors, merchants, and consumers alike are watching closely. Will Groupon’s tech-forward strategy pay off, or will the challenges of the real world keep it from realizing its ambitions? Only time—and perhaps a few more viral TikToks—will tell.