Groupon’s Hug IPO May All Have Been For Nothing.

Posted: June 27, 2011 in News, Opinion
Tags: ,

When Groupon’s IPO raised them so much money i was one of the most shocked people.  With my experience in restaurants, and my education in finance, I could not understand why people thought a company that has never been in the black could be worth so much money.  From my experience with Groupon coupons in restaurants that were nothing but a huge pain in the ass and most will not be repeat users.  Yes they are great to get your name out there to customers, but from my experience they only were purchased by regular customers, did not drive in new business and cost us a ton of money in operations and sales losses.  So I was completely flabbergasted that anyone would think this company had a long shelf life.  Mainly because from a vender standpoint I have yet to hear a single story or a shop or restaurant being satisfied with there use of Groupon.  I understand the consumers who by the discounted coupons and gift certificates love Groupon but if the companies are losing money this will not last.

Now Groupon has more issues than its lack of a successful business model.  Google is going to eat their lunch.  Not only will Google Offers reach a larger audience they will streamline the acceptance processes and make the coupons much more profitable for the venders.

full release here –> Google Could Kill Groupon If They Don’t Screw Up

Google made good on their promise that they’ll turn our phones into wallets by rolling out Google Offers in Portland last month. Now, with more details on how their vision will pan out, it looks like Google has a winner. Unless they lose focus.

Google has put themselves in a position where their multitude of platforms, especially Gmail and Android, their search powers, and the way Offers is designed to benefit both merchants and consumers give them a major advantage over the likes of Groupon and Living Social. We’re talking: Better payment terms for deal providers; Better returns on vouchers; And better distribution through ads and Google’s already immense portfolio of products and services. Groupon, already a powerhouse valued at $3 billion, would have a hard time competing against them.

That is if Google gets it right. Google has a nasty habit of unveiling new services—service they purport will change the world and the way we connect to it—and not delivering, either for lack of direction or lack of a real commitment to making it work. Google TV has suffered for it, though they’re turning that around. Many other have been shut down. For this to be a success, Google needs to sit down and truly consider the scope of this undertaking. If they can do that, then it could turn into something incredible. [Business Insider]

 

Comments
  1. […] in its IPO because the company itself has serious profitability issues. Check here –> Groupon’s Hug IPO May All Have Been For Nothing. or here –> I Stand By My Statement That Groupon Will Be Dead In The Water. […]

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