I’m no fan of Groupon (as stated here previously), partly because of their say-one-thing-but-do-another approach, but mostly because of the financial downside their deals deliver for small business.
Well, it seems the folks at Groupon may have let their bravado outpace their potential. Having turned down a $6 billion buyout offer from Google, they just created their worst nightmare–Google as a competitor, announced yesterday. Given the latter’s access to maps, apps, and about a bazillion local business listings through everything from Adword accounts to Local Search, well…it’s not like they’ll have to do the Upstart Scramble to get off the ground.
At the core, however, this still presents the same problem, different day: Small business owners reliant on physical inventory can’t make the numbers work on these below-wholesale discount offers. The math simply isn’t there, even if you factor in volume. [click here to continue…]
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