Google snaps up Dealmap
Google is taking a highlander approach when it comes to providing Internet services. They’re buying up companies that provide popular services, because in the end there can be only one.
According to Reuters, Google has purchased The Dealmap. This means that Google is branching out into the profitable daily deals sector which is largely controlled by companies like Groupon and LivingSocial.
The terms of Google’s purchase weren’t revealed. But Google said it was "impressed with what The Dealmap team has accomplished."
"Google provides the ideal platform to help us accelerate our growth and fulfill our mission," The Dealmap said on its blog. "Joining Google will help us innovate in new and unexplored areas of commerce."
As you know, daily deals via the Internet are quite popular these days. There are over 400 daily deal providers and it is believed the industry may generate almost $6.1 billion in annual revenue by 2015, according to BIA/Kelsey, trackers of local advertising.
Groupon is the biggest daily deals company, the next biggest is LivingSocial. They now face stiff competition because large, well-funded opponents have entered the market recently.
Google tried to buy Groupon in 2010, but it was a no go. They then launched their own daily deal operation called Google Offers this year.
The Dealmap was launched in May 2010. They collect offers from many daily deal websites. They have over two million users and its app has been downloaded over a million times to iPhones and Android powered phones.
As of now The Dealmap is saying that its main products and services will carry on "for the time being." It is believed that Google will eventually put their mark on the service.
Daily and local deals will still be able to be had through The Dealmap website, mobile apps, and daily email, it clarified.
"As we're ready to share more about integration and transition plans, we'll update our partners and consumers on progress and any news," The Dealmap added.
For the time being we will have to wait to see what Google does with The Dealmap. The acquisition of an established daily deals likely means that Google has something sizable planned for the daily deals market.
It should be interesting whatever it is.