Discount dilemma
Google has confirmed it is launching a tester version of a daily discount service in a move that could mean it will be going head-to-head with Groupon in the future.
The new group buying service is rumoured to be called Google Offers and like many of its current competitors, will pull together discounts and special offers on hotels, restaurants and so on, according to Which?
Google tried and failed to acquire Groupon last year for an estimated $4bn or $6bn depending on the source, but it is now apparently moving ahead with its plans for an IPO, which could value the company at over $15bn- making the decision to reject Google's offer a good one, at first glance at least.
The valuation is proof of group buying sites' popularity and Groupon is reportedly gaining followers in the UK with an estimated 2.5m British users, making it the 49th most visited site in the UK.
It seems Google was and still is determined to get a piece of the group buying action as last week Mashable got hold of a factsheet which reportedly said: "Google Offers...a new product to help potential customers and clientele find great deals in their area through a daily email."
And now, according to Which? Google has confirmed that it is: "communicating with small businesses to enlist their support and participation in a test of a pre-paid offers/vouchers program, part of an ongoing effort at Google to make new products that connect businesses with customers in new ways."
The leak comes just one week after Facebook launched Places Deals in the UK, allowing users to find offers based on their location. The discount site market is consequently growing increasingly crowded with LivingSocial, Incahoot and more services already in the market.
