Mercata to Close Down, Citing Lack of Investment

Share this article:
Mercata, the Internet-based group-buying service provider, said yesterday that it will shut down its operations at the end of the month, citing its inability to attract further private investment.


The company filed for an initial public offering on March 9, 2000 and withdrew it on Wednesday.


Mercata, Bellevue, WA, used the power of group buying to cut prices on name-brand products, including electronics, home and kitchen goods, sporting goods and jewelry. The company called it an auction in reverse -- instead of competing to pay the highest price, shoppers bid to get the lowest price.


"Despite market conditions, we believe that our team demonstrates both tremendous innovation and superior execution," said Tom Van Horn, founder and president/CEO of Mercata.


The 20-month-old company in August received the first patent covering group-buying business methods and related technology. It has 16 pending patents.


Mercata.com will take orders until Jan. 31 and will accept returns postmarked by Jan. 20.
Share this article:
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

News Byte: CX Scores to Take Their Place Beside Price Listings

News Byte: CX Scores to Take Their Place ...

E-commerce aggregator PriceGrabber will begin offsetting price info with service expectations.

Data Byte: Interactive Ad Revenues Exceeding TV for the First Time

Data Byte: Interactive Ad Revenues Exceeding TV for ...

At nearly $43 billion, interactive advertising revenues exceeded broadcast for the first time in 2013.

Marketers: Data Rich and Knowledge Poor

Marketers: Data Rich and Knowledge Poor

While advertisers have become incredibly data-savvy, the most difficult challenge remains causally linking that data to outcomes that really matter.