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It seems his main point is this: Google Offers pays merchants faster (80% of the money goes to the merchant right away, vs 33% with Groupon). The OP expects th
by qeorge 15y ago
It seems his main point is this:
Google Offers pays merchants faster (80% of the money goes to the merchant right away, vs 33% with Groupon). The OP expects this will force Groupon to make the same deal with merchants, which will change their business model, which will put them out of business. That or Groupon won't change its business model, and Google Offers will run them out of business by virtue of this better deal.
IMHO, going from that small point to "Groupon is poised for collapse" is just a bit hyperbolic.
- deleted 15y ago[deleted]
- commandar 15y agoThe thing is, Groupon is already burning cash like it's going out of style with their current model, which is hugely lopsided in Groupon's favor compared to the merchant. If Google starts pushing things toward a position that's a bit more equitable for the merchant, it could end up being a huge problem for Groupon. The number of articles that have been published talking about how poorly Groupon works out for many merchants means there's a lot of room for somebody to step in with more favorable reimbursement and revenue-split terms. Groupon either has to match those or watch their userbase jump to the competition.
- jacques_chester 15y agoNo small business worth its salt is going to turn down favourable terms like 80% in 4 days. Cash flow is life or death on a weekly basis for small businesses.