Home > Uncategorized > NewsFactor.com: “Google’s Dealmap Purchase Could Disrupt Retail”

NewsFactor.com: “Google’s Dealmap Purchase Could Disrupt Retail”


Google’s Dealmap Purchase Could Disrupt Retail
By Jennifer LeClaire
August 2, 2011 2:03PM

Groupon will feel the impact of Google’s purchase of daily-deals site The Dealmap, and so may a lot of other retailers. In just more than a year, The Dealmap has more than 85 million monthly visitors seeking local deals. Google’s size may “scare a lot of retailers,” an analyst said, adding that Dealmap and Groupon could be retail powerhouses.

Flush with cash, Google is still making deals. This time, Google is moving deeper into the daily-deals space where Groupon and LivingSocial rule by acquiring The Dealmap for an undisclosed amount.

Launched in May 2010, The Dealmap lets consumers find and share the best local deals in one place. Basically, it’s a daily-deals aggregator — and it’s hitting on all cylinders. The Dealmap has attracted more than two million users to its web, mobile , social and e-mail products and boasts more than 85 million monthly visitors to its partner network .

“We are impressed with what The Dealmap team has accomplished and excited to welcome them to Google,” Google said. “We’ve been thrilled with the early success of our commerce offerings, and we think they can help us build even better products and services for consumers and merchants.”

Disrupting Traditional Retail

The Dealmap team said it’s thrilled about joining Google. Dealmap cofounders Jennifer Dulksi, a Yahoo veteran, and Chadu Thota, of Microsoft Earth fame, believe Google provides the ideal platform to help the company accelerate its growth and fulfill its mission of helping people save money on local experiences.

The Dealmap said it will continue to support its core products and partner services. People will still be able to access local and daily deals through The Dealmap web site, mobile apps, and daily e-mail, and the company will support The Dealmap API and feeds for existing sourcing and distribution partners.

“Google can raise The Dealmap’s profile significantly because of its size and structure. This puts Dealmap on the map. It makes Google a competitor in this space and creates real problems for Groupon, which is trying to go public, by creating the specter of a large competitor right when Groupon is going to be asking for money,” said Rob Enderle, principal analyst at the Enderle Group.

This is a big opportunity for Google that’s probably going to scare a lot of retailers that are suddenly seeing the emergence of what could be a super online retailer as Google takes The Dealmap to its obvious conclusion. Dealmap and Groupon — and companies like them — could be the Costcos of tomorrow. It’s a huge potential retail displacement.”

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