Groupon stock may pop after the IPO, but the company faces a host of challenges beyond the accounting issues that forced the company to re-issue its S-1.
Competitors, deal fatigue, customer annoyance and small business frustration are all taking their toll on the company.
In the third quarter growth of the number of Groupons sold slowed to just one percent. Back in Q4 of 2010 the growth rate of Groupons sold was 97 percent, according to industry tracker Yipit.
Groupon may be the largest deal-a-day business, but with basically no barriers to entry, it has 383 rivals, according to Yipit. And the growing crowd of rivals threatens to steal customers and is driving up marketing costs. Groupon has #1 market share by quite a large margin -- it had 11 million visitors in September, followed by Living Socialwith 7.2 million. A distant third, Gilt Group had just over 800,000, according to ComScore MediaMetrix.