Intense Competition Pressure: The market for local experiences and services is highly competitive, with numerous players including e-commerce giants, specialized local deal platforms, and direct merchant marketing efforts vying for both merchant partnerships and customer attention, potentially impacting Groupon's market share and profitability.

Merchant Supply Volatility: Difficulty in consistently acquiring and retaining a sufficient number of high-quality local merchants willing to offer compelling deals, which could lead to a decline in attractive offers on the platform and reduced customer engagement.

Customer Engagement Decline: Challenges in maintaining customer interest and loyalty, driven by factors such as deal fatigue, a perceived decrease in value, or the inability to consistently offer unique and desirable experiences, potentially leading to lower purchase frequencies.