Groupon in the Crucible

My article from an old Media & Tech blog (September 24th 2011)

Crucible over high flame

I can’t help but wonder What the hell is going on with Groupon?

Recently in THE TRUTH ABOUT GROUPON: Yes, It Can Make Money—No, It Won't Be Easy Henry Blodget suggested that the novelty for “daily deals” was wearing off. So goes Groupon’s business model with it. It was bold (but inevitably dumb) to turn down a big buyout offer from Google, as it directed itself for a future IPO. Apparently this is up in the air. 

Now the Chicago Tribune reports that its COO is going back to Google. CEO Andrew Mason says this is won’t have an impact on operations. Ah, excuse me, Mr. Mason, how can the departure of the top operations executive not have an impact on operations? 

Also, what’s the deal regarding your revenues reporting? Yes, it’s up dramatically in the previous quarter, compared to the same quarter last year. But this report suggests that some finagling of the numbers has occurred, no? 

What’s more, you fire off a “fiesty internal memo” to employees, which surely you should’ve known would find its way to the public. 

These are mistakes that can be corrected, departures that can be replaced, and consumer confidence that can be regained. But as much as Groupon has been a darling, this is a brutal business that can turn a 180-degree on those it loves.