There were many websites for deals. Then came Groupon, taking deals to sales. They offered deals one can’t refuse. Their product descriptions created desire to buy. They created an urgency because deals expired.
They cracked the local market as well (they sold me a golf lesson near my home). They added buyers & sellers, and grew in sales.
Google offered to buy them for $6 billion. Groupon didn’t take the offer, instead filed for IPO. First for $15 billion, then for $25 billion. Groupon’s profitability and valuation and got wide attention.
Google launched Google offers. Facebook launched facebook deals. LivingSocial got $175 million from Amazon to compete directly. Even ATT joined the party today with a product called ‘shop alert’!
Back when Netflix was growing under the radar, Blockbuster thought “who would put DVDs in a web-site queue and wait for the mailman, instead of picking it up from the the store nearby?”. Seeing how Blockbuster woke up, Reed Hasting said Netflix should have delayed the IPO and the attention.
Andrew Mason and his Groupon should have done just that – continue adding buyers & sellers, and growing in sales, till they were a household name