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How Google"s Money Will Destroy Groupon

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How Google"s Money Will Destroy Groupon

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Google is planning to launch its Groupon rival, Google Offers, in New York City and San Francisco, and will be fighting the Chicago competitor with all its Google might -- promising retailers a truck billboard and Google-bought samples passed out from the truck on the day of their offer, according to reports.

The information was given in a flyer to merchants in both the San Francisco and New York areas in an effort "to butter them up," according to Business Insider. The report said that as well as highlighting the staged events Google would hold on an offer day, the search giant would also donate branded napkins, cups, shopping bags and decor as well as "premium" coffee thermoses on the merchant's redemption day. The clincher? Google will also provide extra staffing for customer assistance. Yes, Google is paying for extra employees.

Google has reasons for trying to destroy Groupon -- aside from spurning Google's $6 billion offer last year, and its possible $20 billion IPO -- it's muscling in on Google's online ad territory. We're also repeating our standard argument about how Groupon is a terrible investment because it's a company that has never made a profit (it incurred $389 million in losses in 2010), is easily duplicated and has no proprietary software.

Something's going to kill off the Chicago startup, so it might as well be a company that has the money to do it quickly and painlessly..

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