Groupon: the Internet 2.0 Webvan?

[flintlock]

Re: Groupon: the Internet 2.0 Webvan?

Sadly, those who created it will profit even if the company fails quickly after the IPO

Unfortunately, isn't this all too often how it works?

Businesses with very low marginal variable costs for added patrons can make this work. Everyone else, probably not. For example, 50% off play tickets to an already 1/2 empty theater is one thing. 50% off getting your house painted would be quite different.

Correct. Anyone not in this type of business is asking for trouble. I can understand brand new companies just looking for quick exposure, but believe it or not, I DO see actual 50% off house painting offered on some sites! Theoretically, the painter gets into a neighborhood and puts out his sign. Next thing he's painting the whole street. Realistically, neighbors talk. They know what the other guy paid. End of new business.

[c1ue]

Re: Groupon: the Internet 2.0 Webvan?

Sadly, those who created it will profit even if the company fails quickly after the IPO.

You're assuming it successfully IPOs.

Every day that passes this grows less likely. The VCs are pushing hard, but the sheep investors aren't lining up very nicely.

The above mentioned explosion in competition and expenses is only one example.

The massive cash losses are another.

[swgprop]

Re: Groupon: the Internet 2.0 Webvan?

It makes Groupon irrelevant to me. Not sure what Scoutmob's cost to merchants is. They recently expanded from 3 cities up to 13, with 7 more on the way. IMO, Groupon will get killed wherever Scoutmob goes.
-Jimmy

As this thread title suggests I have to think Groupon will be a non entity in a couple of years. But then again I thought AOL would never make it into the 21st century so wtf do I know.



More Trouble for Groupon IPO


What was expected to be one of the hottest stock offerings of the year fell into deeper turmoil Friday, as daily deals pioneer Groupon Inc. said it was cutting its reported revenue in half, and its No. 2 executive left the company...

[reggie]

Re: Groupon: the Internet 2.0 Webvan?

Who is attacking Groupon and why?

This, for me, is a far more important question than the merits of Groupon's biz model. I haven't been too interested in this story, as it's very old news. But the motives for this "insider" media attack is of interest, but I must admit, I have yet to research it.

P.S. Off the top of my head, I wonder if this is nothing more than tradition MIC (military industrial complex) institutions (Stanford, MIT, Harvard) fending-off this move by University of Chicago to gain a bigger piece of this tech pie.

It simply does not make sense that the Groupon venture would be attacked by its own industry like this, especially given the System Control Theory value that this venture. Since when has profitability of these types of venture ever been a consideration for media scrutiny?