One of the main industries that have showed some of the highest growth numbers last year is the e-commerce industry fueled by the group-buying business model. While there is phenomenal growth in this space, the business model is not without its limitations. While group-buying and daily deals dominated the 2012, with mobile growth exploding, Vietnam based CityOffers wants to combine the best of both worlds.
CityOffers is a real-time location-based daily deals app. It allows merchants create promotions and discounts, with the ability to target only users around the vicinity. The user experience is fairly straightforward: the app displays deals in Hanoi and Ho Chi Minh based on your current location. Once you have decided on the deal you are interested in, the app sends a text message query to the main server, which returns the voucher code to you.
CityOffers also shared that unlike the old group-buying model, merchants are able to to create offers and discounts whenever they want without waiting for two or three days. Other than that, merchants would not have to worry about the revenue loss from each sold voucher when most of customers do not come back to use their products or services.
Since its launch few weeks back, there has been 70 business accounts registered, along with “thousands of users accounts” registered. While there is traction, what got me thinking was the question: What’s stopping Groupon or established daily deals site like Zing Deal or NhomMua from launching their own mobile app, if they have not already?