Internet search engine Google Inc plans to launch Google Offers, its own version of online discount-coupon sensation Groupon, to help notify subscribers about deals in their area, news website Mashable reported.

The new Google Offers service entails sending e-mails daily to subscribers notifying them of deals in their locality similar to sites like Groupon and Livingsocial do, the report said.

Google had recently made a bid to buy Groupon for $6 million, but was rejected.

Google is testing the program and is reaching out to businesses in local areas, the website reported citing a confidential fact sheet it got from Googleplex about the search engine’s new group buying service.

Google Offers is a new product to help potential customers and clientele find great deals in their area through a daily email, the report quoted the fact sheet as saying.

Google Offers has the following modus operandi. Users are notified through an e-mail about a local deal-of-the-day, offering them an opportunity to buy the deal within a specific timeframe. Google Offers is activated once enough people buy the deal in turn giving users another deal that they have never tried.

From what we can tell, Google Offers will be powered by Google Checkout, the report said, adding it also includes Facebook , Twitter , Google Reader, Google Buzz and e-mail sharing options.

Google has a team in place to craft the offer write-ups even as it is approaching businesses to get them on board with Offers.

The search engine is actively reaching out to businesses now to get them on board with Offers. It even apparently has a writing team in place to craft the write-up for offers.

Google is communicating with small businesses to enlist their support and participation in a test of a pre-paid offers/vouchers program, Mashable reported.

Google Offers is seen as an effort to make new products such as Offer Ads beta that helps connect businesses with customers in innovative ways.

Google will pay 80 percent of a business revenue three days after the deal runs and hold the remaining 20 percent for 60 days to cover refunds before sending the rest, Mashable reported.