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I'm surprised to see Atlanta, Dallas, and San Diego ahead of LA, New York, and Chicago on the initial city list. Any thoughts on why they chose those cities?
by defen 16y ago
I'm surprised to see Atlanta, Dallas, and San Diego ahead of LA, New York, and Chicago on the initial city list. Any thoughts on why they chose those cities?
- larrik 16y agoI can think of a $25 billion* reason not choose Chicago to test in... In all seriousness, if you actually wanted to have test markets, I can't imagine including LA, NY or Chicago with a straight face. *potential IPO, at least
- defen 16y agoFunny, point taken about Chicago. I guess I wasn't thinking about the fact that these are test markets, which is indeed a good reason not to start with the biggest cities.
- dougws 16y agoI still don't get it. Why not have a big city as a test market? It seems like the more potential customers there are, the more likely it is to catch on. EDIT: Serious question, by the way. I assume from the exchange above that there is an answer, I just don't know what it is.
- SoftwareMaven 16y agoReasons not to choose the biggest cities: 1. More traffic than you think you can handle. 2. Demographics don't match the mainstream that you will be selling to later. 3. Competition already has a lock on those cities. I'm sure there are others as well. Edit: the Chicago/$25 billion comments refer to Groupon's HQ being in Chicago (and their Potenial IPO valuation[1]). [1] http://www.bloomberg.com/news/2011-03-17/groupon-is-said-to-discuss-ipo-valuation-of-up-to-25-billion.html http://www.bloomberg.com/news/2011-03-17/groupon-is-said-to-...
- dougws 16y agoThose all make sense. Thanks!