Google Preparing For A Fight With Groupon

With Groupon opting out of the merger, Google is sticking to its plan and moving ahead to launch Offers, a group buying service for potential customers to find great deals online in their region through a daily email.

Google Offers is said to look and function just as Groupon or LivingSocial does. Users will receive an e-mail with a local deal of the day and they will have the opportunity to buy that deal within a definite time limit. Once enough people have purchased, the Google Offer is set off and users get a deal. If you have been using Groupon all this sounds very familiar doesn't it?

For business owners, Google is planning on paying the participating business an 80% share of the revenue three days after the deal runs, with the outstanding balance being held for a 60 day period to cover the refund claims.

The fact sheets below outlines Google Offers in a little more detail:

Google Offers Fact Sheet

Apparently Google is already communicating with small businesses to sign up and participate in a test of a pre-paid offers/ program.

Google Offers will be powered by Google Checkout and will also include Facebook, Twitter, Google Reader, Google Buzz and e-mail sharing options. Seems Google's leaving no stone unturned to make their presence felt and attract customers to their new service.

No date has been set for the launch of Google Offers yet, but I wonder if this news has Groupon a little worried?