Gaopeng

About Gaopeng

Gaopeng emerged in 2010 as a significant player in China's burgeoning group-buying market, operating as an online marketplace for discounted deals on a wide array of products and services. The company was notably established as a joint venture between the American daily-deal giant Groupon and the Chinese internet behemoth Tencent. This partnership aimed to combine Groupon's global experience in the group-buying model with Tencent's deep understanding of the Chinese online landscape. The venture was also backed by Yunfeng Capital, a private equity firm co-founded by Alibaba Group's Jack Ma.

The business model centered on offering daily deals and discounts to consumers across various categories, including dining, lifestyle services, fashion, and groceries, sourced from local merchants. Revenue was generated by taking a percentage of the sales made through its platform. The service was initially launched in major cities like Beijing and Shanghai with plans for broader expansion. Gaopeng's strategy involved leveraging Tencent's vast user base, allowing customers to log in and make purchases using their QQ accounts.

Despite a strong initial push, including raising a total of $50 million in funding over three rounds, the company faced significant operational and cultural challenges. Reports from early 2011 highlighted internal conflicts between Groupon's management team and Tencent over business strategy, expansion speed, and website design, which even led to a brief, unauthorized launch and subsequent shutdown of the site. The company also encountered public trust issues, including a controversy over a fraudulent lucky draw and allegations of selling fake watches, which damaged its reputation. In a move to consolidate its position in the highly competitive market, Gaopeng merged with its rival FTuan in June 2012, a deal orchestrated by Tencent which held stakes in both companies. Following the merger, Gaopeng continued to operate as a brand but eventually became a dead-pooled company. In 2018, the Gaopeng entity re-emerged in a new joint venture with Dalian Wanda Group and Tencent, focusing on integrating online and offline businesses to create a "new consumption" or "smart retail" model, with Gaopeng contributing its electronic invoicing business to the new enterprise.