Wagjag buys Foodscrooge

As we previously wrote, Wagjag launched a new category; Grocery foods.
Now, the Wagjag team certainly did not go out and canvas counter grocers on their own, instead, they decided to buy existing daily deal site Foodscrooge.

Foodscrooge provides Wagjag with the ability of offering food items from food counter retailers. It certainly expands the types of deals that consumers can buy from Wagjag. Given this acquisition, there is now only 1 major daily deal site in Canada that still only offers food deals;  RestoBoom which offers restaurants and food only deals. (RestoBoom is owned by the folks at RestoMontreal, Canada’s top restaurant portal). Dealicious (owned by the folks at dine.to) used to offer food only deals, but earlier in the year expanded to offer other types of deals as well, such as Spa, activities, etc.

Wagjag launched a travel deals service, now a food counter service and we anticipate other niche deals down the road not only from Wagjag but  from  other sites as well. Adding different categories enables deal sites to reach various types of consumers that would otherwise not buy from the site or convince existing consumers to buy even more.

It is also a way to differentiate and perhaps obtain a margin mix that is more stable. Restaurants and spas merchants probably receive prospecting calls from 30-40 deals sites every month, some more often than that. All this competition drives down margins for the deal site. Adding categories that a competitor does not have, yet, enables a deal site to reach and close merchants more easily and obtain more customer signups and therefore sales.

Congrats to the folks at Foodscrooge and Wagjag.