Beyond Groupon: Daily Deals Evolve, New Competitors Emerge – US Business News – CNBC
Posted by exitlanguages
Consider it the daily-deal gold rush. First, there was Groupon‘s much-anticipated IPO in early November, which valued the market leader at $12.7 billion. Now its top competitor, LivingSocial, is reportedly set to close another big round of funding that would put its valuation at around $6 billion. While such nods of approval from Wall Street may offer some validation to Groupon, LivingSocial and the hundreds of imitators their business models have spawned, on Main Street, small-business owners still have their doubts.
“These deal sites call up and claim their service is different from Groupon, but they’re pretty much all the same,” says Mike Scotese, an owner of Grey Lodge Pub in Philadelphia. Scotese started receiving regular pitches from daily-deal companies about two years ago. These days, they call at least once a week, offering to design and distribute a coupon for the pub’s food in exchange for a cut of the sales it brings in. “‘No thanks,’ I tell them. We’re guaranteed to lose money on sales to customers we’ll probably never see again.”
Many local merchants agree. And that’s created an opening for savvy startups looking not to imitate the model, but to innovate.
Strange Random Coupon Quote:
- As Daily Deals Evolve, Startups Look To Solve ‘The Groupon Problem’ (huffingtonpost.com)
- Running a Groupon? Your Yelp Rating Just Went Down (coverboom.com)
- Will Google & friends out-coupon Groupon? (tradingfloor.com)
- Does Your Business Belong on a ‘Daily Deal’ Website like Groupon? (blogs.findlaw.com)
- Can LivingSocial Catch Up To Groupon? (GRPN) (businessinsider.com)
- Groupon is About to Run a Groupon on Itself (appicurious.com)
- Which Daily Deal IPO Is Worth the Hype? (fool.com)
- Four Rules To Avoid Being Burned by Groupon (forbes.com)
- Groupon shares sink to near IPO price (theglobeandmail.com)
- On Groupon (thegongshow.tumblr.com)
Posted on November 28, 2011, in Article and tagged Business model, Groupon, Initial public offering, LivingSocial, Peter Griffin, Philadelphia, Small business, The Deal (magazine), Wall Street. Bookmark the permalink. Leave a comment.