Online marketplace bidorbuy has bought Cape Town-based social buying site UbuntuDeal.co.za for an undisclosed amount.
The purchase adds to bidorbuy's collection of sites, which includes Jobs.co.za, Jump.co.za, TheClassifieds.co.za, PayFast.co.za and Snaply.com.
Bidorbuy CEO Jaco Jonker says the latest acquisition complements the bidorbuy online marketplace. “While bidorbuy enables sellers to sell online to buyers far beyond their geographical locality, UbuntuDeal brings online audiences through the doors of local businesses.”
Jonker adds bidorbuy focuses on products, while UbuntuDeal is more oriented towards entertainment and leisure experiences. “Together, we are poised to bring some very exciting shopping events to the South African Internet audience.”
Jess Green, UbuntuDeal MD, says social buying took off in 2010. He expects further growth this year, both internationally and locally. However, the challenge is to attract enough users to make the deals viable.
“This is where bidorbuy, a high-traffic site with over one million visitors per month, will play a key role,” notes Jonker.
Bidorbuy claims to be SA's largest online marketplace. It was established in 1999 and provides an environment for people to buy and sell goods online.
Cheap deals
UbuntuDeal was launched last November and is based on the business model of collective buying power. It competes in the same space as WiCount and Twangoo. Twangoo was recently bought out by US-based giant Groupon.
The model works via sites offering heavily discounted deals daily on behalf of one of the participating merchants. If a certain number of people buy, the deal becomes available to all. If not, the deal is off.
UbuntuDeal has daily deals in Cape Town, Johannesburg, Pretoria, Durban, Bloemfontein, East London and Port Elizabeth, ranging from restaurant vouchers and spa treatments to hotel stays and WiFi Internet access.
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