I can see the potential it may have.
You travel to City A and need some food, so you look up Groupon offers In City A for restaurants. Restaurant wins, you win, deal done.
You go back to Home City and you see entirely different offers.
Local must have to be the big draw in this for the future, and your smartphone is the key to it going real big.
I agree, the figure for the IPO seems over the top.
Personally, I find the daily promotional deal e-mails are of no interest to me: Most appear to be for beauty treatments.