September 22, 2011
Much has been written about Groupon and LivingSocial, especially Groupon’s rejection of Google’s $6B offer and LivingSocial’s $400M IPO. But what about relatively new entrants into the marketplace? Let’s take a look at AmazonLocal and Google Offers, and why I think they have the potential to crush Groupon and LivingSocial.
AmazonLocal started in smaller markets like Boise, Portland, and Charlotte, and now that they have expanded to larger metro areas, they are concentrating on neighborhoods, which have been carefully segmented, to keep it truly local.
What it can and should do to separate itself from everyone else is offer deals from its own site, Amazon, which is probably fair to call the king of all e-commerce sites. As any company knows, it is always better to expand on your core competency.
It is also interesting to note 2 things: AmazonLocal offered to buy Groupon back in 2010, but was refused, and they are an investor in LivingSocial.
If you have an Android, you’ll want to use Google Offers. It is integrated with Google Wallet, which uses NFC technology to let you pay for retail purchases from your phone. The best part? Use them together, and you’ll get coupons and discounts on your phone, which you then pay for from your phone. Now THAT is the definition of a smartphone.
So why will they beat Groupon and LivingSocial? Daily deal fatigue, number 1. But we already shop at Amazon, so if they offer deals from their own site, they are simply tapping into an already-dedicated customer base and adding a ton of value and reason to continue to shop there. Google, on the other hand, is tapping into technology and their own dedicated customer base – Android users, of which there more than iPhone users by a very large margin.
What do you think? Leave a comment below!
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