Concerns over the Daily Deal (Groupon) model

Here is a great post from Yipit.com, the Daily Deal aggregator in the US…

They made sound points concerning the good, the bad and the ugly on all the Groupon information the industry has received and how there have been hundreds of negative articles written about Groupon since the announcement of their IPO. The Yipit post goes on to describe some legitimate concerns while detailing how others are unfounded.

We have summarized it here, the full post can be found here:

Unfounded Concerns:

1. Local Merchants Don’t Like Daily Deals

2. Local Merchants Can’t Effectively Discount More Than 10%

3. Groupon Insiders Are Cashing Out

4. Groupon is Not Building a Moat

5. Groupon’s Trying To Trick Us By Emphasizing a New Accounting Metric

6. Groupon is Effectively Insolvent

Read the post here:

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