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2 years, 1 month ago

Which will be better Gilt City or Groupon?

Gilt City, like Groupon will offer deals from businesses like restaurants, beauty salons, etc.

Will Gilt City be able to overtake Groupon in this "deals" market?
What are the best parts of each service? What are the drawbacks of each service?

Read about "Gilt" and "Gilt City"
TechCrunch | Gilt Launches Groupon Competitor ‘Gilt City’ In NYC

Groupon: Collective Buying Power
images:
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wy | 2 years, 1 month ago
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1. Traffic
From Alexa, Groupon is better than Gilt.com, even much better than Gilt City.
http://www.alexa.com/siteinfo/groupon.com#
You need to put in Gilt City or Gilt to compare.

http://newyork.gilt.com/
http://www.gilt.com/

2. Scope
Gilt City is only available for New York now.
Groupon covers more cities.

3. Referral benefit
Groupon has referral benefit: refer friend, get $10.
Gilt membership is by invitation only. Gilt City membership is by "request membership".

Groupon members may grow at faster rate, maybe even exponentially.

4. Image and scope
Gilt has the image of "high end" discount whereas Groupon is "anything".
Groupon's scope is larger.

On Gilt City, I can't even see the deals if I'm not a member. It's still a very "exclusive" website, not like Groupon.

Other competitors:
Both Groupon and Gilt City may have to be careful of this competitor Yipit (and at least 3 other companies using the same strategy).. See below..

Most Groupon competitors/clones try to compete by either having a niche (do better in cities less covered by Groupon) or by trying to get more and better deals.

Yipit uses a different method.

In Yipit’s own words:
http://yipit.com/about/

“Yipit aggregates and recommends local daily deals

Your city's top restaurants, bars, spas and shops are offering ridiculous deals on services like Groupon, LivingSocial, Scoop St, BuyWithMe, HomeRun (and about 60 others). We organize all these deals, then recommend the best ones based on your preferences.”

In this insightful
Techcrunch article, it is claimed that Yipit aggregates 66 of these Groupon-like US sites..

Yipit is (free) riding on successes of these Groupon-like sites (including Groupon).
I would guess it is cheaper to operate by aggregating instead of getting deals itself..
Yipit funding: 250k,
Groupon funding: 171M.

In another article, it is claimed that there are others that have same business model of Yipit (aggregating deals):

LocalOfferLounge
DailyFlock
8coupons

This Europe Techcrunch article pretty much summarize the strategy: If you can’t beat them, aggregate them. :-)

I don't know that there are that many Groupon-like, deal sites in US.
There are at least 66 of them, haven't counted those that are not aggregated by Yipit yet.
source(s):
websites mentioned in texts.

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greytdogz1 | 2 years, 1 month ago
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It is possible but unless they expand and move away from dealing exclusively with "luxury" items I don't think that they will overtake Groupon. Groupon has numerous locations and deals with numerous venues from the inexpensive to the expensive. That is what gives Groupon the buying power, they have not limited themselves to a specific market.
The drawback with both is that they only offer deals for places in specific cities which is not helpful for people who do not live in or near any of these cities.
I would like to see them expand outward and to offer online deals too.
I see all of these sites and offers as followers of the highly successful WOOT.

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easyeboy | 2 years, 1 month ago
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There are dozens of people on the beach in Miami promoting Groupon all weekend, and they just gave me a bunch of candy ;-) Groupon really is unique in what they're doing. I'm not going to get into the specificities of this, yet they're really a progressive company. I'm not sure about Gilt City, yet anything is possible.

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