(Reuters) - Groupon Inc Chief Executive Andrew Mason said on Thursday that the company's location-based service Groupon NOW will likely not be a material contributor to results in the next one or two quarters.

Groupon NOW is a relatively new service that differs from Groupon's main daily deal business. Groupon subscribers can check on nearby deals that are happening in the next one or two hours, based on their location.

Mason said customers of the company's daily deals are using Groupon NOW too. However, the CEO stressed that the new service will likely take time to grow.

All the metrics are moving up and to the right, Mason said during a conference in San Francisco. But I wouldn't expect it to become material in the next quarter or two. It's a longer-term investment.