Google debuts Groupon competitor

It has certainly been a busy week for many companies. At this week's D9 conference, many of them unveiled exciting new products and services. Google, certainly among the top companies attending, has announced that it is launching a coupon site to compete with the Groupon online coupon service.

The new service, Google Offers (beta) was rolled out earlier this week, and according to the help page,

"Google Offers brings you daily deals from local businesses, redeemable for discounted goods or services. From restaurants to spa treatments, Google has deals from the best businesses your city has to offer. Each day, a limited number of deals are available for purchase during a specific timeframe."

‚ÄčOn the flipside, Groupon purports that,

"Groupon negotiates huge discounts—usually 50-90% off—with popular businesses. We send the deals to thousands of subscribers in our free daily email, and we send the businesses a ton of new customers. That's the Groupon magic."

Interestingly enough, Groupon turned down a bid from Google for 6 billion USD in December 2010, according to Bloomberg.  As with Google Offers Beta, Groupon also has time limits on their deals, but Google certainly has one ace up its sleeve that will certainly differentiate it from Groupon: NFC.  Near Field Communication is a technology used for close range bi-directional communications (for a primer, visit the NFC website's FAQ page). This communications technology has already been integrated into the Google Nexus S, which will eventually integrate with Google Wallet (also listed as beta), a service for mobile devices, allowing your mobile device to make purchases at brick and mortar retailers.  As you may imagine, geolocation data can be used to deliver "deals" relevant to your location, and directly to your phone.  

Currently, Google Offers is only available for users in Portland, Oregon and will be expanding, according to the Google Offers website.

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8 Comments

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sometimes using others ideas is not so bad, it creates competition and thats good for the end user. Also companies have a good deal, groupon offers its services as no cure no pay, but if there is a "cure" their profit is at least 30%. if other players offer same but cheaper it will forces groupon also to lower prices.
I wouldn't invest in groupon, seeing the competition they will be getting (besides google) stock will almost surely drop quikcly.

Hmm... funny how Google likes to call themselves innovative when, in fact, they just purchase companies that have innovative ideas. I guess they had to resort to their own thinking when Groupon couldn't be bought like Android was.

PlogCF said,
Hmm... funny how Google likes to call themselves innovative when, in fact, they just purchase companies that have innovative ideas. I guess they had to resort to their own thinking when Groupon couldn't be bought like Android was.

They've obviously taken those foosball tables in the middle of the office to good use.

They would need to do a pretty big budget advertising campaign for this, because Groupon is quite big already.
Google missed Social, and now this.

I think that these deal websites are born because of the recession and that they will eventually fail once people have a bit of money flow again.. I dropped groupon because of there emails everyday that were just sooo annoying.

Lachlan said,
I think that these deal websites are born because of the recession and that they will eventually fail once people have a bit of money flow again.. I dropped groupon because of there emails everyday that were just sooo annoying.

I think they will stay around for some time. Coupons are still here and I use them. Foot long sub at subway for the 6 inch price, hell yea. I like to spend less.

Lachlan said,
I think that these deal websites are born because of the recession and that they will eventually fail once people have a bit of money flow again.. I dropped groupon because of there emails everyday that were just sooo annoying.

You know you can unsubscribe from emails keeping functionality on the website?