Google Shuts Coupon Business

By TechnologyFOXBusiness

Google (NASDAQ:GOOG) is shutting down its coupon business known as Zavers after 17 months. The service let users clip coupons online and redeem them in-store at grocers including Food Emporium, D’Agostino and Raley’s.

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The idea of the program was to help retailers send targeted coupons to the right customers. It also used Google data to track the effectiveness of coupon campaigns.

Google says the program was supposed to “increase transaction speed” at the cash register because it took away the need to scan paper coupons.  It also reduced hassle for consumers since they did not have to carry coupons around.

Going forward, a Google spokesperson says the company is “working closely with clients during the transition and (will) remain focused on connecting shoppers with the brands they love through offerings like Product Listing Ads, Google Shopping Express and Google Wallet.”

Google Wallet is an app that lets users access loyalty card information digitally. App users can also store offers they view online.

“Zavers was basically a coupon program tied with the merchant point-of-sale system,” said Neil Doshi, analyst at CRT capital. “My guess is that the integration process with the POS systems were proving to be challenging, and retailers were not too keen on sharing their data with Google”

Launched in  January 2013, the product stemmed from Google’s acquisition of loyalty rewards service Zave Networks in 2011.

Google shares are down 9% in the last three months. Shares are currently trading around $554.