Let the Daily Deal buyer beware: Groupon is catching some flak this week after posting a deal on Google's Nexus 7 tablet that used some questionable math, questionable facts, and really didn't offer much of a discount.
Daily deals services are multiplying even faster than savings-hungry consumers can track them. But this business model is deeply flawed: A significant fraction of those who purchase a deal never even redeem their coupons, meaning these so-called "promotions" are failures, for shoppers and retailers both. And merchants can suffer when deals are redeemed.
Already the global group-buying leader and growing much faster than its competitors, Groupon is getting a lot more funding. For what? For world domination, of course. . .and here's how Groupon is likely to put that new-found cash to work.
While news that Groupon has rebuffed Google's $6 billion offer has stolen the limelight, Amazon's $175 million investment in LivingSocial could end up shaking up the daily-deal business and helping the No. 2 e-coupon company gain ground against Groupon.
Groupon has turned down Google's acquisition offer of roughly $6 billion. It might be holding out for more money, but columnist Alex Salkever thinks it's more likely to be aiming for a big IPO. Here's why he believes its offering could launch a whole new wave of Internet IPOs.
Just a few days after Google reportedly offered $6 billion for the top group-buying site, Groupon, the service's biggest rival, LivingSocial, has scored a $175 million investment from Amazon. But how long will these hot deals last?
Group-buying site Groupon is expanding its offerings with a new Shops feature that will enable customers to see more than one deal at a time, personalized to their interests. The news comes after Google offered a whopping $6 billion for the company.
Some pundits have decried the Groupon model as easy to emulate, and predicted fierce competition and price wars. Web industry watcher Alex Salkever used to believe that, too -- but not anymore. Here's why.
