Consolidation Takes Hold in Deal-a-Day Coupon Biz

By Luis Chong Wed., May 18 2011 at 4:14 PM

mycodetrip.com

Nobody can touch Groupon, but smaller companies are being swallowed up.

Three Knocks, who's there? Nobody, according to the company's website. After barely seven months, this Emeryville-based Groupon-type business has bowed out.

Groupon-style promotions have been controversial for many restaurants who see them as little more than an exercise in giving away free meals, resulting in a decline of dining offers. By contrast, owners of service-based businesses rave about coupons' benefits, though on the customer side, a handful of horror stories has tarnished the industry.

That's no longer a concern for Three Knocks, Inc. CEO and founder Taylor Wang, who gets to cash out from GroopSwoop, which he founded in 2009 (New York-based BuyWithMe acquired the GroopSwoop domain last month). Online daily-deal promotion companies are going through a period of consolidation, as big players with deep pockets are acquiring smaller regional competitors. Chicago-based Groupon leads the pack by far, followed by Washington D.C.-based LivingSocial.

Here in San Francisco, TownHog, Bloomspot, HomeRun, and PinchIt, are still hanging on. Atlanta-based ScoutMob's no-money-upfront-style is gaining many local fans, while New York-based GiltCity and L.A. newcomer BlackboardEats are looking for a niche touting exclusive, members-only promotions.

Overwhelmed? Use an aggregator site like Yipit, which tracks these and other offers.

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Tags:

BlackboardEats, coupon sites, Groupon, LivingSocial, Three Knocks

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Looks like coupon market is grow... Great hot coupons I had been searching for! Here's to hoping I can get the deals once I get the coupons!!!

LC11

More mergers: BuyWithMe just bought TownHog.

Guest

The information regarding the hold on a daily deal by consilidation which you have mentioned here is very nice and also much beneficial.

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Online promotion of daily trading company is going through a period of consolidation for the financial strength of large companies are acquiring smaller regional competitors.

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