not really...although they are both essentially "middle men" its a diff scenario entirely....when a hotel room or a seat on a flight goes vacant of course its a total waste for the business..however groupon is diff because its for the small or medium business to introduce itself to the customer..the business sells you its wares at a discount, in the hopes you will enjoy your experience and will return as a full paying customer in the future...stats have shown groupon groupies seldom go back as they are just bargain hunters..and the business loses because it sells its services for 50% off....stats have shown they use groupon for a one or two time free advertising and thats it..they dont want to be in bed with groupon long term..its a losing proposition for the merchant..
@pure_skillz... it's perfectly fine to go long or short on any individual stock. But never let your emotion overpower the realities. Plenty of companies are doing regular groupon consistently. Also only bad businesses (that can't never turn them around) will lose money and customers eventually. Groupon's main weakness: profit margin. But i also remember it took Amazon about 4 years to report the first profitable quarter. For now i am happy if Groupon focuses on creating a loyal brand name. The rest will unfold automatically.
This is not true. Plenty of health clubs across the country are successfully using Groupon to sign up new gym memberships.
It's an amazing way to get potential customers in the doors. And, if only 20% of Groupon customers wind up coming back or signing up, that's 20 people out of 100 who previously didn't experience your merchant offering...they have friends and family members, all of whom could become future customers, provided the customer experience is good.
The replacement cost of Groupon, with all of its merchants across the globe, is worth significantly more than current value. Everyone thinks it is so easy to do this. It's not, and there are lots of companies who thought they could compete in the space, that really don't have the breadth and depth of service offerings and merchant connections.
Over time, the barriers to entry will only increase.