Google is testing an online voucher scheme called that would give users discounts for limited time deals, in a move that would place it in direct competition with Groupon, the firm it tried to buy late last year. Like Groupon, ‘Google Offers’ will sell time-limited deals from local vendors, such as restaurants. Ten dollars, for […]
Google is testing an online voucher scheme called that would give users discounts for limited time deals, in a move that would place it in direct competition with Groupon, the firm it tried to buy late last year. Like Groupon, ‘Google Offers’ will sell time-limited deals from local vendors, such as restaurants. Ten dollars, for example, might buy $20 worth of food at a local cafe.
In its company blog, Google said: “This initiative is part of an ongoing effort at Google to make new products, such as the recent Offer Ads beta, that connect businesses with customers in new ways. We do not have more details to share at this time, but will keep you posted.”
Rival Groupon works in a similar way, with local merchants to offer deep discounts products, but the good deals don’t kick in until a minimum number of Groupon members commit to them.
Google was reportedly ready to pay as much as US $6 billion for Groupon, making it one of Google’s most pricey acquisitions, before Groupon’s board rejected the deal.
Groupon, which was founded in November 2008, is a private company that had an estimated revenue of $500 million in 2010.
While Groupon is Google’s most obvious competitor when it comes to offering local deals, the field of coupon sites has rapidly grown to include sites such as LivingSocial and Tippr. Flash sales site Gilt Groupe and the newsletter DailyCandy also offer local deals.
