Shoot to kill – Groupon clone Snippa enters the deadpool

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[UK] With over 12 UK competitors, it’s no surprise that the Groupon clone fall-out has begun.

After writing about the group buying aggregator Deal Romeo earlier today, one of our readers alerted us to the fact that Groupon clone Snippa, which launched as recently as March 9th this year, has entered the deadpool. A notice on the site reads:

“Following careful consideration we have decided that the group buying space in the UK is too crowded to allow us to offer an outstanding product to both our merchants and customers.”

Which just about sums it up as well as we could.

This is from a company that only a few weeks ago sounded pretty confident of its ability to stand out from the crowd, having invested more heavily than its competitors to secure the best deals for its customers, co-founder David Hobart told me at the time.

So why the sudden turn-around? I’ve put that question to Snippa’s other co-founder, Tim O’Shea, and we’ll update the post should we get a reply.

Update: Here’s O’Shea’s reply, which I think could prove a useful case study for other Groupon clones.

On launch we had a couple of technical problems which gave us a chance to review the business as a whole. Where we had hoped to be able to offer our customers fantastic deals, the flooded market has meant that conversations with merchants has been more about what commission we are charging than how much discount they can offer prospective customers on mass…

So from our prospective it looked less and less likely we were going to be able to [do] what we had set out to, be a great destination for truly fantastic deals for our customers. I think we could have made the business work but this would have been a strategy of keeping going for 2/3 years whilst the competition slowly dwindled at which point we may be [in] a position to negotiate better deals…

In a weird way I think the amount of competition maybe isn’t good for the model, one dominant player would be able to get better deals for the customers.

Finally the prospective of Groupon coming to London plus MyCityDeal so financially strong we simply, short/medium term, couldn’t keep up with their huge customer acquisition budgets. Where we had hoped for first moving advantage we were too slow to market.

Our team is still intact, we are keeping the company going, but working on some new projects.

  • http://Www.madebymany.co.uk Ian Shipman

    I heard a rumour that one of the bigger players in the UK has swallowed up all their deals…

  • http://money-watch.co.uk/6792/snippa-nipped-in-the-bud Snippa Nipped In The Bud / Money Watch

    […] it seems that market saturation has done for Snippa, with this message now appearing on their site: Snippa is sadly no longer operating as a group […]

  • James

    VivaVoucher is dead too (had the same deal for 3 weeks now).
    Wowcher is closing soon; always running same old deals.
    Dealbunch did not have any traction so joined another team.

    Serious player seems to be MyCityDeal, Keynoir, Likebees and Groupola.
    Problem with those is that MyCityDeal is showing fake numbers to attract new merchants and many merchants are unhappy with the services and the promises.
    Too early to tell if the Keynoir model will be successful. Propably they limit their market.
    The main problem of Likebees is funding. Their website is well done and deals seems to be high quality. However if they do not secure funding soon they will have problems.
    Groupola has a lot of money but now they are seen are the cheap discount website.

    Interesting to see what will happen in the sector.

  • http://brettmbell.com/?p=1269 When Clones Attack! German Groupon Clone Gets €7m Warchest | BrettMBell.com

    […] the Groupon-clone fall out has already begun in the UK, it’s looking more and more like a two horse race in Germany based on funding […]

  • http://vc-list.com/?p=2747 When Clones Attack! German Groupon Clone Gets €7m Warchest | Venture Capital & Angel Investors Lists News and Jobs

    […] the Groupon-clone fall out has already begun in the UK, it’s looking more and more like a two horse race in Germany based on funding […]

  • rav

    This is following the expected pattern then, low barriers to entry mean an influx of lets-give-it-a-shot’s followed by the deadpooling of those that cant make it work. Expect a couple with adequate marketing and a strong team (especially on the sales side) will succeed here.

    As an interesting side note – I have noticed people trying to create group-buy’s on specialised forums e.g. for cars. The issue here is they dont have the framework to do this properly, perhaps an interesting opportunity, anyone like to explore give me a shout!

    Rav
    http://www.Flytail.co.uk

  • http://www.compuc.com/technology-news/when-clones-attack-german-groupon-clone-gets-e7m-warchest/ When Clones Attack! German Groupon Clone Gets €7m Warchest | Technology News Videos And Resources

    […] the Groupon-clone fall out has already begun in the UK, it’s looking more and more like a two horse race in Germany based on funding […]

  • http://canhazblog.com/?p=10933 When Clones Attack! German Groupon Clone Gets €7m Warchest | CanHazBlog.com

    […] Uncategorized 6 Apr 2010 While the Groupon-clone fall out has already begun in the UK, it's looking more and more like a two horse race in Germany based on funding alone. […]

  • http://juegando.com/uncategorized/when-clones-attack-german-groupon-clone-gets-e7m-warchest/ When Clones Attack! German Groupon Clone Gets €7m Warchest | Juegando

    […] On April 7, 2010, In Uncategorized, By juegando Share While the Groupon-clone fall out has already begun in the UK, it’s looking more and more like a two horse race in Germany based on funding […]

  • http://www.magicfm.com Nigel

    James
    I look at the Wowcher deals everyday and they have a great mix and in my opinion the best choice in London my miles. I called them and they said they are launching in other cities soon so I don’t know where you get your crap information from.

  • http://socialcommercetoday.com/social-commerce-aggregators-yipit-aggregating-176-daily-deals-from-66-sites/ Social Commerce Aggregators: Yipit Aggregating 176 Daily Deals from 66 Sites | Social Commerce Today

    […] And in yet another TechCrunch post, three emerging opportunities for hot social commerce Group-Buy market are identified by Tim O’Shea, founder of the short-lived UK Group-Buy site Snippa (that recently headed to the deadpool blaming an overcrowded, overheated market). […]

  • http://www.inside.com.tw/04/17/groupon-clone-websites-around-the-world Groupon模式網站在全球遍地開花 - Inside

    […] TechCrunch Europe上的一篇報導有Snippa創辦人之一回應給TechCrunch的看法,筆者簡單整理幾個重點如下: […]

  • http://vc-list.com/?p=3518 Gilt Launches Groupon Competitor ‘Gilt City’ In NYC | Venture Capital & Angel Investors Lists News and Jobs

    […] is only the latest in a long, long string of Groupon-like sites to launch recently, but it’s in a better position than […]

  • http://lotecnologico.com/2010/04/gilt-launches-groupon-competitor-%e2%80%98gilt-city%e2%80%99-in-nyc/ Tecnologia » Gilt Launches Groupon Competitor ‘Gilt City’ In NYC

    […] is only the latest in a long, long string of Groupon-like sites to launch recently, but it’s in a better position than […]

  • http://brettmbell.com/2010/04/23/gilt-launches-groupon-competitor-%e2%80%98gilt-city%e2%80%99-in-nyc/ Gilt Launches Groupon Competitor ‘Gilt City’ In NYC | BrettMBell.com

    […] is only the latest in a long, long string of Groupon-like sites to launch recently, but it’s in a better position than […]

  • http://www.compuc.com/technology-news/gilt-launches-groupon-competitor-%e2%80%98gilt-city%e2%80%99-in-nyc/ Gilt Launches Groupon Competitor ‘Gilt City’ In NYC | Technology News Videos And Resources

    […] is only the latest in a long, long string of Groupon-like sites to launch recently, but it’s in a better position than […]

  • http://www.techfeed.in/internet/gilt-launches-groupon-competitor-%e2%80%98gilt-city%e2%80%99-in-nyc-2/ Gilt Launches Groupon Competitor ‘Gilt City’ In NYC | Technology Magazine

    […] is only the latest in a long, long string of Groupon-like sites to launch recently, but it’s in a better position than […]

  • http://syamsurian.com/tech/gilt-launches-groupon-competitor-%e2%80%98gilt-city%e2%80%99-in-nyc.html Gilt Launches Groupon Competitor ‘Gilt City’ In NYC | Syamsurian.com

    […] is only the latest in a long, long string of Groupon-like sites to launch recently, but it’s in a better position than […]

  • http://www.agriya.com/groupon-clone Alistair

    There are going to be 1000’s of successful Groupon-like sites soon. The sector will fragment into specialist niches & regions. Clearly there is demand for Groupon Clone software/scripts, one clever Indian company is already selling a groupon clone product: http://www.agriya.com/groupon-clone

    Anyone used it?

  • http://www.dealradar.com Dan Hess

    I agree with you, Alistair. There’s still room for differentiation and twists on the business model. In the US some cities have as many as 17 sites based on our monitoring at http://www.dealradar.com.

  • http://www.agriya.com sathe

    Groupon has taken the Internet world by storm since its launch in 2008.

    The concept is very simple, each day all the subscribers are emailed a single fantastic deal. It could be deep discounts on food, entertainment,
    places to stay or things to buy. Since Groupon launched, it has been

    Groupon Clone

    featured on just about every major media channel in the Western world, and has caught the attention of Entrepreneurs around the world who are

    looking to create a Groupon clone with their own unique spin or twist http://www.agriya.com/groupon-clone

  • http://jp.techcrunch.com/archives/jp-20100514-finaly-groupon-race-is-starting-in-japan-pikuwari-gives-you-surprise/ [jp] Piku割でサプライズを与えたいーついに日本でもGrouponレースが始まった!

    […] シンプルなサイトなだけに、当然次のGrouponを狙うべく、様々な地域で様々な○○版Grouponができている。 […]

  • http://atmark.tv/blog/201004/%e5%b0%84%e6%ae%ba-groupon%e3%81%ae%e3%82%af%e3%83%ad%e3%83%bc%e3%83%b3%e3%82%b5%e3%82%a4%e3%83%88snippa%e3%81%af%e6%ad%bb%e3%81%ae%e3%83%97%e3%83%bc%e3%83%ab%e3%81%b8/ 射殺-GROUPONのクローンサイトSNIPPAは死のプールへ | @ blog

    […] Shoot to kill – Groupon clone Snippa enters the deadpool 12こ以上のイギリスの競争相手と共に、Grouponクローン落伍者が出始めたのは、驚きではありません。 […]

  • http://massivecoupon.com Marc

    We’ve just cancelled our groupon clone launch and instead released our clone for free!

    http://www.massivecoupon.com/deals/groupon-clone/

    http://www.massivecoupon.com/deals/groupon-clone/

  • http://gadgetfee.com/?p=1093 When Clones Attack! German Groupon Clone Gets €7m Warchest « Gadget Fee

    […] the Groupon-clone fall out has already begun in the UK, it’s looking more and more like a two horse race in Germany based on funding […]

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