Even after the first daily-deals bubble exploded, ending with Groupon's less than stellar IPO, we're seeing a resurgence in the once-trendy Internet money making scheme. This bubble is less of a crazy-bonanza than the first, in which we saw dozens of start-ups begin and end within the span of months. This is more of a smaller, shrewder after-bubble. But, as that first one didn't go so well, mostly because daily deals as a business has many, many flaws, we should be wary of this comeback -- even if these newbs offer a twist on the traditional daily deals model.
After learning about Pirq, the Apple-backed daily-deals experiment, we heard about a new effort by Foursquare to capitalize on its already plugged-in audience, from an interview with Foursquare CEO Dennis Crowley in today's Wall Street Journal. Today's Journal also has a spotlight on the super-hyper local daily deals experimentation happening via "geofencing," in which retailers offer deals to customers via text when they are within a certain range of the store. Each of these depart from the traditional Groupon model. Rather than offer the same flash deals to people in one city, all of these strategies try to localize the process further, hoping to incentivize the potential coupon purchaser with little perks.