Google's newest acquisition, The Dealmap was a swift move for the company in the daily deals industry as it aims to overtake Groupon.
The Dealmap compiles various daily deals from an array of sources and puts them on an easy-to-see map. Dealmap divides deals into categories such as restaurants, health & beauty, shopping and others. Users can also simply search for what they would like a deal on and where they are located.
"We believe Google provides the ideal platform to help us accelerate our growth and fulfill our mission. We're passionate about helping people save money while having great local experiences, and in Google we've found the perfect partner that shares this passion, as well as our vision and strategy. We believe that joining Google will help us innovate in new and unexplored areas of commerce," Dealmap said in a statement.
Google has made several attempts to make headway in this industry. Last year, it attempted to buy Groupon for $6 billion. However, Groupon declined and has now gone forth with a plan to go public. After getting rejected by Groupon, Google added a daily deals service, Google Deals, when it unveiled the Google Wallet. Thus far, Google has rolled out Google Offers on a city by city basis.
"We are impressed with what The Dealmap team has accomplished and excited to welcome them to Google," Google said in a statement. "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."
The acquisition was announced yesterday with little detail. Google, which did not put out a press release, did not announce when or how the service would be implemented.
Charles King, analyst at Pund-IT, suggests Google may be looking to bring Dealmap to its Google Wallet service. Google Wallet will combine daily deals with NFC technology, allowing people to make point-of-sale purchases with their phones and get coupons in the process.
"From what I've heard, Google's intention is to streamline and integrate the service with Google Wallet. There was a lot of speculation how Groupon like technology would be implemented into wallet. This seems like a logical fit," King said.
King also said Google could be using Dealmap and Deals to bolster online advertising sales. He foresees a situation where Google works with advertisers to promote daily deals through Google on the web.