Beyond Groupon: Daily Deals Evolve, New Competitors Emerge – US Business News – CNBC

Image representing LivingSocial as depicted in...

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.

via Beyond Groupon: Daily Deals Evolve, New Competitors Emerge – US Business News – CNBC.

Strange Random Coupon Quote:

“I don’t take coupons from giant chickens, not after last time.” – Peter Griffin, Family Guy

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Posted on November 28, 2011, in Article and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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