A few months back Google had made a spirited offer to buy out Groupon, a website which offered group discounts and send more foot traffic to businesses across the world. Groupon was a runaway success which led to them declining Google’s rumored $6 billion buy out deal. Today Groupon is valued at around $15 billion.
Groupon’s competitor Living Social also has a huge clout in the market. The recent success of selling over 1 million Amazon coupons goes on to show that. So in all, both Groupon and Living Social are huge runaway successes. Google on the other hand is sitting on a huge pile of local advertisers who they want to tap in to, after all there is so much money in the offing.
So would Google just sit around and lurk till they found another sound investment like Groupon? Well, the answer is no. Recently, Mashable uncovered some confidential documents about Google’s new venture called "Google Offers".
Google Offers in a nutshell is similar to what Groupon and Living Social does. It will be offering customers a deal for a limited amount of time at a discounted price. Unlike free local listings for Google search, Google Offers will take a cut of the pie while driving foot traffic to small businesses.
So is this a Groupon Killer? Well not exactly. As Brad from TNW puts it, the offers market is huge. One day you will find a better deal on Groupon, the next on Living Social and the next on Google Offers. So no one is going to kill anyone here, it all depends on how good a deal each of these competitors can offer.
Google has confirmed to Mashable and Search Engine Land that Google Offers is for real and that they are currently talking to small business to test out the product. So you might not see Google Offers deal for the next few months.
Nevertheless, in case of group deal offers, the more the merrier for the customer, since they will have more offers and deals to choose from. This will also be good for businesses too since they will have options and negotiation power since every deal site would want their money. In the end it is a win-win deal for everyone.
So let the competition begin. If you are interested you can view the Google Offers Fact Sheet uploaded by Mashable on Scribd.