Groupon Joins the SA Gang Bang

Global deal-of-the-day website and collective buying pioneers, Groupon, have just acquired South African imitators Twangoo, for an undisclosed amount. Groupon appear to be monopolising the group-buying world with the recent purchases of smaller rival companies in Israel as well as India. The Bad Boys at Groupon recently rejected a US$3bn offer from Yahoo and a US$5,3bn offer from Google. Cripes!

If you’re not aware of how these collective buying websites work, let me explain…

1. You see a deal you like, let’s say “Anal Bleaching Kit for R200, valued at R600” – you ‘buy’.

2. The seller will set the minimum number of buyers that need to participate in the deal in order for it to go live. If the bar is set at 50 buyers and only 49 participate, the deal falls flat. This guarantees the seller of sales volume in order to cover fixed costs and encourages buyers to share the deal with friends, colleagues and loved ones in order for the deal to materialise. After all, every boss needs an Anal Bleaching Kit.

3. If the minimum amount of buys is reached, the deal is activated and you receive a printable voucher to use to redeem your kit and the savings associated therewith.

Simples.

It appears South Africa is finally jumping on the discounting bandwagon that our first-world counterparts have enjoyed for an age. Now whilst I feel sorry for the little guys and imitators that Groupon will soon squash, I’m thrilled at the saving opportunities that will be passed on to us, the prosumers. Being a foodie, I hope restaurant brands will get involved, improving trade on quiet nights by offering deals like those on Top Table and Square Meal in the UK. And I don’t mean Monday burger specials at Spur, I’m talking about the good stuff! If Gordon Ramsey can do it, so can we.

Pity www.groupon.co.za is registered by local competitors WiCount. Will Groupon offer Wicount an exorbitant amount for the domain name, as was the case in Australia recently ($286,000) or will they simply acquire Wicount? I guess time will tell.

brandslut xoxo

 

1 Comment

    1. also check out ubuntudeal.co.za – i think they are fairly new but some interesting products so far…

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