Groupon UK MD says the company will stay top dog

Groupon denies that plans for a Google “daily deals” service will eventually see the company lose its position as market leader.

/n/p/m/groupon160.jpg

Last week, Google confirmed it was testing Offers, a group buying site that will see the search giant going head to head with existing group buying sites such as Groupon, Living Social and Groupola, by offering daily discount deals on services and products from local businesses.

Christopher Muhr, Groupon UK managing director, says Groupon has a head start in forming contacts amongst local businesses. The two-year-old company, reported to be the fastest-growing in the world, says it is adding 150 new employees a month to its Chicago headquarters alone.

Muhr does admit that both Google Offers and the Facebook Deals service, launched in the US in November, last year present a competitive threat to the business, and says it would be “foolish” not to take them seriously.

“Market power helps, because Google has a huge email inventory it could tap, Facebook has a great platform to activate people, but the source of power in that space is the merchant, the partner,” says Muhr.

He predicts that Facebook and Google are likely to target larger brands, as opposed to the local links that Groupon has formed through its rapidly expanding sales force.

Speaking at briefing in London today (27 January), Joanna Shields, vice president and managing director of Facebook EMEA, says “our products are always open to anyone who wants to participate”, though a list of US launch partners for Facebook Deals consisted mainly of large and multinational companies.

Facebook vice president of partnerships and platform marketing, Dan Rose, says new Facebook launches such as Deals will always have a “social design”. The company thinks about products “from the perspective of people and their friends first and foremost, and whatever the application is as secondary to that”.

Facebook has also announced the launch of its own group-buying feature, “Buy with Friends”, although it will initially be restricted to the purchase of Facebook credits used in transactions for virtual goods, such as those in social games.

Readers' comments (3)

  • I check http://grouponbot.com more often then I check groupon now.

    Unsuitable or offensive? Report this comment

  • Groupon'sbusiness plan is better suited to the support national merchants then local merchants, as the percentage they take from the merchant is too high. The Groupon deal is not a win-win for the merchant. Groupon deals will become become less attactive as merchants will be able to get the same deals and only have to give up 20% vs 50%. The competition will force these perecentages down making it more of a win win for the merchants. Bottomline - No merchant! No groupon!

    Unsuitable or offensive? Report this comment

  • A page which is currently comparing all Groupon deals and giving as well a rating on deal quality is www.coupobox.co.uk

    Unsuitable or offensive? Report this comment

Have your say

Mandatory
Mandatory
Mandatory
Mandatory

Related images


Job of the Week

Top Jobs

social

+media Facebook Twitter LinkedIn
knowledge+bank