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Correct, it's not that 'anyone can start a groupon'. But it's rather 'any website/app with a large enough reach in at least one or more local market can start
by chailatte 15y ago
Correct, it's not that 'anyone can start a groupon'. But it's rather 'any website/app with a large enough reach in at least one or more local market can start a groupon service'.
- yelp/gowalla/foursquare/scvngr/etc.
- facebook/google/apple/microsoft/etc.
- country-specific like rakuten/renren/yandex.
- local-specific like eatla/sfgate/latimes.
Literally hundreds and thousands of well-established websites can do coupons. They just have to look up which stores already have done a group-buying deal before and contact them. And they can all undercut each other until probably they only take 2-3% and give the rest back to vendors.
No wonder Groupon wants to IPO RIGHT NOW.
- sushrutbidwai 15y agoEven though theoretically what you are saying is correct. In reality however the tremendous investment group on has done in the building up the sales power provides them with more defensibility than you would think. For example - A vendor is parting away with some money for every new customers. She could have used the same money via adwords? Still lot of these merchants may not have even tried adwords before. There in comes the power of having reach to direct markets. Of course sales power doesnot provide as good protection against competition as technology or even UX, but that does not mean we can write off Group on that easily as well.
- chailatte 15y agoWhat?