Groupon Falls Into The Gap

There is no doubting the immense popularity of online group-buying, an emerging business in which Chicago based Groupon has claimed a cozy spot at the top. Groupon even graces the cover of this month's Forbes, being boasted as "The Fastest Growing Company Ever." Since its debut in 2008, there have been countless deal-of-the-day competitors that have emerged. Group-buying is total win/win for consumers, giving them the opportunity to save some serious cash on food, events, and scuba diving lessons.

So what happened this morning? What deal could be so amazing that it actually brought the Groupon site to its knees? That would be today's discount by American clothing giant Gap.

In what I believe to be the first ever "mass Groupon," the Gap's $25 for $50 worth of apparel was today's deal-of-the-day for over 90 USA/Canada cities. Groupon enthusiasts and first-time buyers alike flocked to their city's respective Groupon site, causing the site to go down early this morning.

While Groupons are usually local or regional small business deals, this giant push from a nationwide retailer like the Gap brings a sense of mainstream recognition to Groupon's booming business. If it's any consolation, my mom bought her very first Groupon today.