Will Google Offers compete with Groupon?

It appears that Google is planning to offer a new service which will be very similar to Groupon model.

Google said it was “communicating with small businesses to enlist their support and participation in a test of a prepaid offers/ vouchers program.”

The company added that the Google Offers initiative “is part of an ongoing effort at Google to make new products, such as the recent Offer Ads beta, that connect businesses with customers in new ways.”

Google Offers looks and operates much like Groupon or LivingSocial. Users receive an e-mail with a local deal-of-the-day. They then have the opportunity to buy that deal within a specific time limit (we assume 24 hours). Once enough people have made the purchase, the Google Offer is triggered and users get that all-too-familiar $10 for $20 deal for that Indian restaurant you’ve never tried.

“Google is communicating with small businesses to enlist their support and participation in a test of a pre-paid offers/vouchers program. This initiative is part of an ongoing effort at Google to make new products, such as the recent Offer Ads beta, that connect businesses with customers in new ways. We do not have more details to share at this time, but will keep you posted.”

Google essentially confirms Google Offers is real. It looks like Google Offers is in the testing phases, though.

Source: CNN.com, HeraldSun

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