Google Launches Groupon Competitor, Groupon Poaches Google Exec For COO Job

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After dangling a reported $6 billion offer in front of daily deal site Groupon (which it ultimately rejected), Google is pressing on with its own service. Today Google unveiled Offers, a new feature that will allow local businesses to show off deep discounts to consumers. Seemingly a direct competitor to Groupon and Living Social, Offers boasts of discounts of 50% off or more.

Google's service is buoyed by its massive visibility and infrastructure. As with many things at Google, Offers is in beta, and will begin in Portland, Oregon, before spreading to other cities. (Residents of New York, San Francisco, and Oakland can sign up for the service before it launches, perhaps indicating where Offers will head next.) To get involved, users must opt in to the service by subscribing to Offers, which sends deals to consumers via email—that's quite the distribution platform for Google, which boasts more than 193 million Gmail users.

For Groupon, Google represents yet another competitor to the ever-growing deals space. Others like Living Social are surging in traffic, Microsoft launched its own deals service last month, and countless other micro deals services are beginning to sprout.

Not that Groupon has become stagnant. Today, the company hired away Margo Georgladis from Google. The now-former VP of global sales and planning was Google's highest-ranking executive in Chicago, according to Crain's, and represents a big steal for Groupon, which has put her in the No. 2 position as COO.

[Image: Flickr user Najeebkhan2009]

Read More: Most Innovative Companies 2011: Google and Groupon

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11 Comments

  • patent litigation

    Considering the fact that, almost immediately after it publicly launched its "daily deal" venture, Google Offers became the subject of a patent infringement suit filed by Walker Digital, one wonders whether Google will decide that this new business venture was worthwhile after all.
    http://www.industryweek.com/ar...

  • Dale Edman

    Two things . . . . Groupon should have taken the money, they are going to regret this. Second there are too many competitors in this space which will be good for companies because they will have to lower their fees to be competitive.

  • Rob Day

    Agreed. I can't help but to see Groupon being a case study for business students of the future. Maybe Groupon has something up their sleeve, but I don't see how they are going to get to 4billion.

  • Santiago Darmandrail

    Kind of dissapointed that Google would get into this business. Let's say I am a restauranteur and want to go on Offers, if full course meal goes for $50 at full price then I will have to pay (at least) $37,50 to gain one more customer. That's a hell of a price for a customer that in the midst of things will probably run off to the next daily offer any of these guys offers (redundantly enough).

  • Rob Day

    I have to disagree with this post though... The Groupon model is working for businesses and this is for a lot of reasons.

    1. It reduces the risk of trial to new consumers. I'm a city living young professional. I'm not broke, but I'm not rich, and it is easy to fall into a routine. This deal model helps break that routine, encourage trial, AND build future loyalty if the business delivers when the customer arrives.

    2. Even if they spend 37.50 to get a new customer through the door its relatively cheap in terms of marketing and advertising. On top of that customers OFTEN spend more than the exact amount, and repeat business is solid too.

    3. There is a solid halo effect of people who read about your business but may not purchase at that time. You'll never know how many of them end up giving you a try, but is it any worse than AdWords?

    I do think this makes a lot of sense for Google to get into given their current base, their local capabilities, and their push into social. This industry will have to condense and it's probably going to be one of the big guys who does it.

  • Santiago Darmandrail

    Not a great move for former Google exec Margo Georgladis. Does anyone else feel this way?

  • Rob Day

    Absolutely agree on this point. It seems a little short sighted - that or the rest of us are missing something huge.

  • xonti

    Solo su www.xonti.it tutte le migliori offerte di coupon, deal e sconti in  Italia, con google streetview vedi anche dove sono i negozi!inoltre li puoi personalizzate sui tuoi interessi. I prezzi più bassi e 

    le offerte migliori per acquisti di benessere, viaggi, hotel, ristoranti, bellezza, salute, spa e altro ancora da Groupon, Groupalia, KGB Deals, Letsbonus, ...."

  • Nora

    Google Offers is going to be a big hit. People already use Google, so they are familiar with the company and they trust them. They already have a great consumer base.

    Consumers can find deals to take advantage of by going to http://www.dailydealpool.com. This site will compile a list of relevant sales and deals in your area, and email them to you daily. This saves consumers from having to search and helps businesses get more advertising!