Google Getting Ready To Launch Groupon Competitor, Google Offers

This should come as no surprise to anyone. After Google failed in its attempts to buy Groupon, they have decided to stand up a competing service called Google Offers. Mashable first broke the story after gaining access to a confidential fact sheet that described the program. This is the way business goes though, if you can’t buy them, beat the crap out of em.

googleoffers

Lookout Groupon Google Offers Is Coming

For folks not familiar with Groupon, it works on a sort of group buying model “deal of the day” type scenario where people are offered a certain thing at a steeply discounted rate to what it would really cost but the deal only activates if a certain number of people agree to buy whatever the thing is. It’s pretty ingenious actually and works out well for everyone involved for the most part.

Currently there is no word on when it expects to launch Google offers, but according to the fact sheet it should be in a beta like mode very soon. Google Offers has a lot of catching up to do, Groupon is absolutely crushing this space and growing at a rate that is just astonishing. Google tried to buy Groupon last month for $6 billion dollars but was refused and after raising $950 million in new capital the company is now valuated at around $6.4 billion. I still stand by my statement at the time that Groupon should have sold then, I just don’t think they will ever be more valuable than they are right now. As soon as the big boys spend some real money to get into this space and integrate it with their existing infrastructure Groupon is going to be in a very tough position, Groupon is growing but it won’t ever have Google muscle or reach. I said it before their business is too sensitive to price competition; people go where the deals are and they don’t care where that is.

This market is already crowded as it is with a host of Groupon wannabes including Amazon.com-backed LivingSocial, which recently made headlines and fans by selling more than a million $20 Amazon gift cards for $10 each. It appears as if Google Offers will be powered by Google Checkout and will include integration with Facebook, Twitter, Google Reader and email.

My question to all of you though is this, do you care about who you get the deal from or just that you get the best deal?

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[source link=”http://mashable.com/2011/01/20/google-offers/”]Mashable[/source]

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