We’ve seen different deal sites running a particular deal simultaneously or at a later date. Sometimes even two variants of the same deal.
But how about this… Two deal sites running the exact same set of active deals. That’s right – identical deals! Everything right from the title to the price & discount is unchanged. Here’s a screenshot displaying the deals from the two sites – DealYantra and Dealivore (taken a few days back).
When we shot an e-mail asking if the IndyaRocks owned DealYantra bought out the Hyderabad based daily deal startup Dealivore, we received the following response from Suresh (of Dealivore).
“Its a partnership. Thanks“
But isn’t DealYantra getting the short end of the stick? Dealivore.com has got way better traffic and a massive facebook fanbase (300k+)? Serving the same content doesn’t make much sense. Such an arrangement would only cannibalize into DealYantra’s revenue.
On the other hand if DealYantra had bought out Dealivore, it would have made business sense. In fact, it would have been a master stroke since it would given them a firm footing in the highly competitive deal space. DealYantra could have then pivoted and found a more niche domain to focus on. Also, if they had two brands, it would have given them the opportunity to differentiate one product offering and focus on a new target segment. Perhaps concentrating on a dedicated vertical or catering to a more premium luxury segment would have given them a wider audience. IndyaRocks could take a leaf out of Fashion & You who had acquired daily deal site wanamo.com (rebranded as Deals And You). And it’s been working quite well for them…
Do you believe that this partnership makes sense? What are your thoughts?