One of the reasons Groupon investors got way too excited about the company when it went public was the hot new product that Groupon had just launched: Groupon Now.Instead of offering you a deal of the day, via email, Groupon Now was going to allow you to push a button on an app and see all the deals around you right now.
It sounded great.
Alas, it doesn’t work.
In part because people can’t be bothered (or forget) to open the app and push the button. The reason a deal a day via email works, it turns out, is because email is “push,” whereas the “now” product is “pull.”
What evidence suggests the “now” product doesn’t work?
So whatever value Groupon investors were assigning to Groupon Now should probably be written down to zero.
By the way, now that Groupon’s stock has collapsed, is it cheap enough to buy yet?
When Groupon went public, we said we wouldn’t touch the stock with a 50-foot pole… unless/until it dropped to $12 a share. Well, we’re nearly there. So at some point soon, we’ll take a close look at the company again. But given the way Groupon keeps shooting itself in the foot, there doesn’t seem to be much rush.