This should be the final nail in the coffin for Groupon's IPO.
The NY Times reports that business deal sites have fading allure. I said a while back that group buying valuations represented a bubble.
“A lot of people saw an opportunity to get rich quickly,” said the Forrester analyst Sucharita Mulpuru. “It was a very 1999 mentality.”
Eighty percent of subscribers to Groupon’s daily e-mails never bought a deal.
the coupon sites fed a relentless bargain-hunting mentality among customers that did not use them
“Offering a Groupon puts a merchant’s reputation at risk,”
Here's what group buying sites should do.
Maybe Groupon's latest investment will show some promise instead. Although it capitalizes on another bubble in the making.
It is always easier to identify assets that are bubbling than to predict when the bubble will pop
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