Google Offers Failing to Compete with Groupon, LivingSocial
September 13, 2011 11:25 AM
comment(s) - last by
Google Offers struggles to compete with Groupon and LivingSocial
Google Offers, which is only three months old, is having a hard time breaking into the daily deals industry despite its recent efforts to expand its local bargains to more U.S. cities
Not too many companies seem to be having any luck in the daily deals business corner. While Groupon has been successful in its deals venture, it's currently under questioning by
the U.S. Securities and Exchange Commission (SEC) after Groupon CEO Andrew Mason released an internal memo to employees last month that "lashed out" at critics and discussed August revenue growth. This move has put its
initial public offering on hold for now
regulations limit what a company can say before a planned IPO.
In addition, Facebook quit its
after a short four months in the business.
Now, it looks as if
Google is on its way
to being in the same boat as Facebook. Google Offers, which is only three months old, is having a hard time breaking into the daily deals industry despite its recent efforts to expand its local bargains to more U.S. cities.
From July to August 2011, total revenue generated by
fell 23 percent despite an increase of 22 percent in the number of daily deals ran. Revenue per deal dropped 37 percent, partly due to a 46 percent drop in the number of vouchers sold per deal.
Google even had to increase the price of its vouchers by 18 percent, but it's still much lower than the price of Groupon and LivingSocial vouchers.
Groupon and LivingSocial remain the daily deals heavyweights. Groupon's revenue increased 13 percent in August from July, coming in at $120.7 million, and its market share increased to 53 percent from 51 percent in July.
LivingSocial slipped 3 percent to $45.1 million in August and had a market share decline to 20 percent from 22 percent in July, but still remains in the top daily deals ranks.
This article is over a month old, voting and posting comments is disabled
9/13/2011 11:51:18 AM
While Groupon has been successful in its deals venture.
That's quite debatable, if you measure success based on profit this statement is untrue. Groupon has burned through tonnes of investment dollars and their coupon service is not profitable.
9/13/2011 12:03:29 PM
That's just silly. You don't need revenue to be a billion dollar company on the interwebs, and you sure don't need "profit".
All you need is enough investment dollars to get a pool built in your theater room so you can float and drink Mai Tais while you watch the new Star Wars on Blu Ray, and dump and run before the company goes belly up.
It's the circle of internet commerce life.
"DailyTech is the best kept secret on the Internet." -- Larry Barber
Groupon Delays IPO Due to SEC Questioning
September 7, 2011, 11:18 AM
Facebook Launches Coupon Deals Service
April 27, 2011, 5:26 PM
Details on "Google Offers" Groupon Competitor Surface
January 21, 2011, 10:02 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Instagram Bans "Curvy" From Hashtag Searches, Provokes "Plus Sized" Outrage
July 16, 2015, 1:20 PM
Mozilla Promise Punctual Windows 10 Firefox Release, Teases at iOS Arrival
July 7, 2015, 3:08 PM
Netflix Announces 7-to-1 Stock Split, Eyes Explosive Overseas Growth
June 23, 2015, 8:18 PM
Most Popular Articles
Exclusive: Google's "New" Search Icon Was Created in 2008 by Russian Designer
September 2, 2015, 6:45 PM
Kentucky Man Faces up to 10 Years in Prison for Shooting Drone Trespasser
August 13, 2015, 2:58 PM
Windows 10 Hits 75 Million Users; Grows Nearly 4x as Fast as Windows 7
August 28, 2015, 10:22 PM
Microsoft's Flagship Windows10 Lumias Rumored to Pack 25 Minute Charge Times
August 31, 2015, 8:13 PM
"KeyRaider" Hits 225,000+ iPhones, Mobile Malware no Longer Just a Droid Thing
September 1, 2015, 11:50 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information