Groupon Buys Ideeli — A Death Knell For Daily Deals?


Oh daily deals, we hardly knew you. Hot news right up until they weren’t (say, right around Groupon’s big overblown IPO), they might not be dead yet, but they certainly aren’t getting any bigger.  Groupon, the first in the field, is staying in business by expanding to related, but different models, like event ticketing, and with its most recent purchase, flash sales.

With its acquisition of the New York-based sale site ideeli, which was announced today, Groupon makes an official move into the fashion flash sale sector.  Beyond getting into that game, the daily deals company is also acquiring ideeli’s advanced mobile commerce strategy.  It’s not yet known whether Groupon will be expanding either ideeli’s core business or its mobile platform.

It’ll be interesting to see how or if Groupon is able to capitalize on the purchase in general — like daily deals, flash sales are now a former trend, if anything.  While they seem to have more staying power with consumers than what Groupon’s original business was modeled on, their star isn’t exactly on the rise, either.  At any rate, Groupon’s diversification will make it easier for the company to transition away entirely from daily deals, should they die out to the point that it makes sense to abandon them completely.