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Two points: Groupon should want to get out of this market, it's a race to the bottom, the days of skimming 50% off the top are going away as services like Livi
by ihumanable 16y ago
Two points:
Groupon should want to get out of this market, it's a race to the bottom, the days of skimming 50% off the top are going away as services like LivingSocial, GiltCity, and a billion other knock offs drive profit margins lower and lower.
Groupon recently launched their Merchant Center ( http://www.groupon.com/merchants/welcome http://www.groupon.com/merchants/welcome ), which seems right up Google's alley. This kind of self-service, low-margin, high-volume, set-up is the kind of thing that Google has the scale to completely dominate. I think Groupon's brand + Google's Scale could equal profit, and if Big G is looking at that this deal might make sense after all.