DrinkOnMe’s Groupon for drinks closes, with Lydia born from its ashes

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While it may not be as big of news as Groupon CEO Andrew Mason’s firing earlier this week, it comes as no surprise that DrinkOnMe, a “Groupon for Happy Hour,” has sent an email out to users annoucing that it will disctontinue its service, which alloewd users to buy 20€ worth of drinks at select bars for just 12€. Likely running into the similar problems as Groupon has, or having identified the early warning signs for scalability issues, DrinkOnMe seems to have taken the core of their mobile payments technology – it always was quite a smooth technology behind those drinks – and built it out as a standalone app, named Lydia.

Currently available in the iPhone app store, Lydia allows users to exchange money, debit card – to debit card, via their smartphone. For example, if your friend wants to squirm out of paying his debt on a meal or a poker match because “he doesn’t have a fiver,” now you can call him out for the cheapskate he is, without all the fees of PayPal. It has interesting features like keeping track of your receipts, and passbook features like loyalty card organization.

I haven’t quite made up my mind about how often I would use such a service, but DrinkOnMe had a fair amount of data on people’s purchasing habits, so I would definitely keep an eye on this new mobile payments player.

One Response

  1. Avatar
    paulmike

    Groupon
    should become truly ‘social’ – that is, it ought to allow users to
    upload profile pics and comments on deals. This creates a feedback loop
    which provides free secondary ads for merchants, a data mine for
    Groupon and quality control for consumers.

    Ask yourself, why do people spend more time on FB than any other
    site? The answer is key to Groupon’s survival and profitability.
    Faces. People’s faces. We log in to see that we exist, call it
    narcissism, call it validation. In any event, this simple human foible
    is the answer to Groupon’s low web traffic.

    If people are logging into FB to see themselves, the comments they
    post and replies these engender, Groupon can and should do so also.
    More time on the site equals more sales. More sales means higher stock
    prices. I could see this stock finally unleashing its full potential
    and soaring back up to 15 or 18 dollars by next year if this strategy is
    adopted.

    If the fatcats at the top can stop rolling in all that easy IPO money
    and get to transitioning Groupon into social networking they can
    return profits for shareholders and employees alike.

    FB coupons, Groupon faces. Sink or swim!

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