Google is learned to be working on a new Groupon-style pre-paid offers service called ‘Google Offers‘. The service, which is said to be currently in its testing phase, will let customers get a daily email of best deals in their neighborhood. Customers may then choose to sign up for the deal within a prescribed time. If enough customers sign up within this time period, the deal will be activated.
According to sources, Google is working with businesses to release 80% of a business’ revenue share three days after the deal runs. The remaining 20% shall be held for up to 60 days to cover for refunds.
The Groupon model has generated tremendous interest in recent times and although there are concerns that such a business is not viable in the long term, we have been seeing a lot of acitivity in this space in terms of new entrants and consolidation. Google is known to have recently made an offer to acquire Groupon that was rejected by the management. Now, with Google’s entry, the segment is sure to see some interesting activity.