Saturday May 25, 2019

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ThinkNear Launches Daily Deal Site: Is the Market Ready for Another?

NY-based ThinkNear has launched a daily deal business that, according to Crain’s New York Business, that is backed by IA Ventures, Google and Qualcomm with $1.6 million in funding. Given the consumer and merchant fatigue coupled with the troubles of industry leader Groupon and other daily deal sites, it appears that ThinkNear’s debut is a bold move. But, company execs say they are focusing on narrow,  high-value market, structuring themselves as solutions for merchants “struggling with seasonal and hourly variability in their businesses,” according to Crain’s.

“[Deals] basically have offered one of most effective promotional vehicles for local businesses,”  Ben Sun, chief executive of Launchtime, an incubator and investor in three daily deal companies, told Crain’s. “It is going to be so big that you’re going to see a lot of different variations to support this market.”

Although new sites are busily trying to distinguish themselves from the Groupon’s of daily deal businesses, they still will have to work get them to keep their subscribers. According to Crain’s, that means they’ll need to rise above disorganize email and prove they are unlike 700 other sites that function similarly. Aside from appearing unique, acquiring new customers is becoming more expensive; as acquisition costs tripled in 15 months for Groupon. Despite concealing details, most sites acknowledge that the industry has its limitations and, thus, are altering their methodologies to extend their brand beyond of the daily-deal space.