When Andrew Mason launched Groupon in 2008, he would never have imagined that his brand would create a whole new industry. Even though Groupon is still the market leader, hundreds of other companies have since emerged adopting the same business model of offering local deals powered by group purchasing. This year alone, we have seen giant brands like Google and AT&T jump on the band wagon and the latest one to add to the list is Amazon.
AmazonLocal which has been launched within past few hours is Amazon’s own version of Groupon, or for that matter, LivingSocial in which Amazon invested $175 Million last year. You can choose your city to view local deals offering products and services at a discount of at least 50%, however, AmazonLocal only displays deals for Boise,ID right now and will be coming to more cities soon. Similar to other competitors, you can also subscribe to get daily deals in your inbox, see how many people have purchased a specific deal, and view/print the deals that you have already purchased. Interestingly, a little note under today’s deal says “Sold By LivingSocial”, so it is not entirely clear yet if AmazonLocal would be it’s own separate entity or just another front for selling deals that are powered by LivingSocial.
Amazon’s entry in this market increases competition several fold and it will be interesting to see if a lot of consolidation and acquisition is seen within the next few months.