Alan Patrick was featured in Observer article on Groupon prospects on Sunday 2 December 2012
The company isn’t going anywhere: it has over $1bn in cash and makes a profit. But, says Alan Patrick, co-founder of tech consultancy Broadsight, it’s pretty clear to everyone now that Groupon is not the new Google. The company was the first to float in the new wave of social media firms and attracted an outlandish valuation as a result, says Patrick, “but really it never was a social media company. It’s a coupon business, which is a perfectly respectable business – but not one worth $13bn.”
He adds: “Real-world coupon businesses are not high-value businesses. Putting Groupon online doesn’t make it one. It has to source deals, sell the benefits, write copy for coupons etc, for huge numbers of small-player deal providers.”
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