Despite a series of controversies and lawsuits, Groupon (NASDAQ:GRPN) continues to march forward with its acquisition spree. This week, it acquired Ditto.me, a mobile social recommendation app, which enables users to discover new places to visit, restaurants to check out and movies to watch with their friends. [1] Ditto’s service will be shut down and will be integrated with Groupon’s mobile and web apps eventually. It seems to be more of a talent acquisition, as the iOS app had a relatively low number of users.
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With this acquisition, Groupon may look to improve the recommendation features on its mobile apps, and also add a social component using recommendations from friends using the app to drive sales of daily deals – its core offering.
Groupon continues to add new services to its range of offerings through acquisitions in a bid to expand beyond the daily deals space. It has launched a series of auxiliary tools for the end user and small businesses to offer much more value than just daily deals.
The company leads the daily deals space where it competes with LivingSocial backed by Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOG) Offers, Yelp (NYSE:YELP) and countless clones, but is looking to expand its offerings in other categories to diversify its revenue streams.
We currently have a $14 Trefis price estimate for Groupon, which stands nearly 10% above its current market price.
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Notes:- Groupon Acquires Social Recommendation App Ditto.me, Techcrunch [↩]
