We haven't even SEEN the local merchants bail on Groupon yet, and that is going to happen. Believe me. I deal with disenfranchised Groupon merchants everyday, and they almost all hate it. The craziest part is they're all considering doing it AGAIN just because they feel blackmailed into it by the "if I don't do it, my neighbor will. At least this way I might get something out of it" situation.
I love selling an alternative, because it sells itself. You're NOT like Groupon? SOLD!