As Groupon nears its IPO, its customer acquisition costs are rising, both its margins and number of actual Groupons sold per deal are falling, and Google, Facebook and Microsoft are looking to get into the space.
So too newspapers as they hope to leverage the deep relationships within the local communities they serve. For example, today Boston.com (the Web site for the Boston Globe) announced a very Groupony daily deals site called (drumroll) Boston Deals.
Business Insider suggests all this is the way it should be and is bullish on the company’s IPO. It is, after all, history’s fastest growing company.
Me? Sounds like a very short stick will be in someone’s hands when all this plays out.