Bad news for group buying from local daily deal aggregator and number-cruncher Yipit. Following on some earlier analysis based on the start-up’s S-1 filing, the initial paperwork required for an IPO, Yipit finds that Groupon’s numbers are getting worse with time. In Boston, the company’s second-oldest market, subscribers are buying fewer Groupons and revenue per merchant is waning, Yipit’s Vinicius Vicanti writes. As Groupon spends more to acquire new customers, its subscriber base is buying fewer Groupons. “That’s not good,” is Mr. Vicanti’s kicker. Read More
Group Buying Mania
A day after local mini-start-up Dealburner.com launched to alert users to flash discounts when they check in to a venue via SMS, it turns out Foursquare is rolling out its own instant deals with Groupon, starting in Chicago.
Foursquare announced it would be syndicating deals from Living Social, Gilt City, AT&T Interactive, BuyWithMe and Zozi, surfacing them to users in the “explore” tab alongside merchant offers about two months ago–a hot source of revenue for the location-based start-up, which is still giving venue owners free advertising by letting them offer deals at no fee. It’s a great deal for Foursquare, which gets a piece of the daily deal pie, and a good deal for advertisers, who are essentially paying for search ads as consumers using the “explore” feature are looking to make a decision about where to go. But Groupon was noticeably missing from the line-up. Read More