> What are they doing that <insert name of successful web company here> isn't?

Managing cash apparently. There have been questions about their accounting since the S-1 was filed, which now seem to be even more justified.

Actually,I think your initial impression is right. They are are an expensive business because of their army of sales associates. It is precisely because of this expense that they can't afford the technology they would prefer.

I've always wondered why Groupon didn't just provide a platform for well-connected local people to act as completely independent sales reps who work purely on commission. Why bother with actual outright hires? They're most likely going to have to lay a bunch of them off anyways.

What would be their barrier to entry story under this? Why would they need to raise so much capital? How would they scam together an IPO without those two justifications?