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GrabOne Surpasses 10 Million Deals Sold

It hasn't been publicly announced but it's safe to say that GrabOne has now sold over 10 million deals (vouchers and products). Back in April 2014 they passed the 9 million vouchers sold mark. If we say to April 2014 they sold 200,000 a month, then over 51 months of operation we come to 10.2 million vouchers. I'm calling it!

Interestingly though, GrabOne has removed the public counter that had this tally clear for all to see. They seemed to remove it around April too. It is strange because since they launched this counter has been keeping a tally on both the success of their site, and of the daily deals industry in general.

At last estimate GrabOne had 65% market share in the group buying vouchers space. They of course have started selling physical products in recent years, so I am not sure if the market share figures included products too. Because if they do, the Torpedo7 with their $100m sales last year surely would have have to be included in market share figures. Well, sales through the 1day site at least. So it does get murky.

It's also possible that due to Torpedo7's growth GrabOne's market share dropped, and they don't want that highlighted so they have quietly removed it.  Either way, the counter was fun while it lasted. From launch in July 2010 you could follow the meteoric growth of GrabOne. No other site came close.

It's possible thought that their rate of sales is slowing down, so maybe they didn't want people to be able to work this out. GrabOne is of course now 100% owned by a public company, NZME. While NZME does report twice yearly earnings (inlcuding breakdowns for GrabOne) it's possible that analysts could estimate revenues and extrapolate them from the counter. So they may have decided to pull it for that reason to have less effect on share price. The new NZME was likely structured behind the scenes around the time the counter was pulled so they likely decided not to be as transparent going forward.

Like I said in the April article I'll say it again. 10 million is a big number. That's not 10 million Dollars, thats 10 million vouchers. With only 4 million people in the country, we are talking an average of more than 2 vouchers each. With a potential market of interent buyers (population less kids, and those not online, it may be 2.5 million). So that would be an average of 4 vouchers for each internet connected adult. Amazing stats.

If we look at dollars saved, in April at 9m vouchers sold, the dollars saved was $415 million dollars. $415m divided by 45 months (since launch) to November (51 months) that's around $470 million dollars saved for kiwis. Now, that is technically not revenue, but it's the amount they have saved customers over paying full price for the deals. At a usual deal discount of 50% off the normal price, we can hazard a guess that actual dollars received are in that magnitude.

Great Kiwi Success Story.


Posted: Mon 24 Nov 2014


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