Big Deal.

Are investors gearing up for Groupon remorse?

Scott Olson—Getty Images


Groupon's impressive $700 million IPO on Nov. 3--the largest tech IPO since Google's--certainly left investors smiling. But the daily-deal giant has yet to prove that its business model works for vendors and customers.

Groupon's model is a mixed bag for businesses. More than one-quarter of vendors offering a daily deal lose money on the venture, a Rice University study found, and another 18% merely break even. Even when a deal helps a vendor's bottom line, it may end up hurting its reputation. A study analyzing customer ratings at found that reviews mentioning "Groupon" or "coupon" rated their experience...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!