What's wrong with Groupon today? It's susceptible to fraud. Fake or closed businesses can just run a deal, honor it until they get their payout (60 days after the deal runs), cash the check, and split town. Groupon knows it, too: their S-1 contains a whole section on fraud: "We may incur significant losses from fraud and counterfeit Groupons." Ouch.
Meanwhile, the totally-not-a-Groupon-clone Savored.com (formerly VillageVines) is expanding to ten cities, double the existing amount. Ben McKean, co-founded of the restaurant deal site, says, "The fact that 90 percent of restaurants have never done work with the deal sites means we are succeeding."
It's positioning itself as the anti-Groupon. The site sells reservations for $10 and then offers a 30% discount off the check; unlike Groupon, who snags half the revenue brought in by their deals, restaurants working with Savored keep all of their profits.
· Daily Deals And The Potential For Fraud [TechCrunch]
· Savored Is a Groupon Competitor That Feeds Off Merchants’ Fears About Groupon [AllThingsD]
· All Groupon Coverage on Eater [-E-]