Moneysupermarket.com is launching its Local Deals service today, which competes directly with the localised discounts offered by Groupon.
By offering the MoneySupermarket Local Deals service in London, Liverpool, Bath and Manchester, the price comparison website is muscling in on a market which has been dominated in recent months dominated by Groupon.
Moneysupermarket will be rolling out the service to other cities in the next few months, following successful trials in Brighton, Chester and Oxford.
The Local Deals service offers discounts on premium experiences and products in local areas plus national offers from leading brands.
Mark Guymer, Head of Shopping and Vouchers at MoneySupermarket provides more details: “The deals on offer will be exclusive and clearly focused on high quality experiences such as wine tasting, luxury hotel stays and fine dining, many of which might have previously been out of reach for some.
“MoneySupermarket Local Deals also allow customers to use the power of social networks to easily share offers with friends and family – making sure they don’t miss out.”
Finding and marketing local discounts has been dominated by Groupon over recent months so it will be interesting to see how a price comparison site such as Moneysupermarket can win market share from the USA based company.
Groupon, who are based in Chicago, turned down a $6 billion offer from Google as they intend to become listed on the stock market in the next few months.
New entrants to the local deals market from companies such as MoneySupermarket may undermine the attractiveness of Groupon to potential investors.
It makes you wonder if Groupon executives are now regretting turning down the offer from Google to buy them out for $6 billion. The Groupon business model is straightforward to copy, as moneysupermarket is demonstrating, and therefore vulnerable from competitors with deep pockets who can nibble away at the Groupon market share.
Analysts are already predicting that Groupon will be valued at $5 billion, or under, if and when it launches its IPO. As more competitors enter the competitive local discount market, that valuation may fall further.
We, the consumer, benefit, however, as companies battle on our behalf to offer more and better discounts, although local suppliers must feel under pressure from companies such as Groupon who are vieing for their business.