“Groupon is a spectacular company,” says this source, echoing the board’s sentiment.
“It’s literally defining a new form of interaction with the Internet. It has created perhaps the greatest form of advertising ever conceived. It is perfect.
“Groupon could not have existed before now. It’s a business that can only happen now because prior to now you don’t have the social elements of the Web working the way that they should and you don’t have merchants appreciating the opportunity the way they could or should.
Groupon sells coupons, not invisible condoms or no-hangover martinis. I have no doubt that Groupon can be quite profitable, but coupons have been around for a hundred years. Groupon competitors will spring up, just as they have in the real world. Retailers are going to get skeptical about whether coupon shoppers are potential return buyers or actual skinflint cheapskates, just as they have in the real world. All this second coming talk about the most ho-hum business model imaginable makes me think we’re in yet another bubble.