I personally don't like Groupon as a business. I am only lukewarm to its personal value to myself and to my family and friends.
The model though really bugs me. It just feels - well plain wrong. Carving up someone else's business model and profiting from it.
I dont buy the whole - new business pitch. That is all BS.
Groupon has burned through and incredible amount of cash in a very short period of time. It has raised $1.1 billion and burned through $942 million.
Henry Bodget has a post on them pointing out that Groupon is running low on cash. This is VERY scary. The business is built on the standard model of growth at all costs. Therefore it should be a Wall Street Darling.
BUT note what it did with the cash. Here is what Henry had to say:
"it is also worth noting that, in the history of the company, Groupon has raised a total of $1.1 billion of cash--and paid out $942 million of that cash to its early investors and executives (highly unusual for such a young company). If Groupon does get into cash trouble, therefore, it will not be because the company didn't discover an amazing new business opportunity or raise all the capital it needed. It will be because of, well, greed."
Read more: http://www.businessinsider.com/groupon-low-on-cash-2011-8?op=1#ixzz1Va99ymW1
Greed is good. Screwing your customers is better.
I really have a problem with this.
Cheers
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