Travel deals website Getaway Lounge has been ‘acquired’ by Cudo in a deal that is really a merger given they share/d a common owner, Nine Entertainment, which is seeking to cut costs in a sector struggling for profitability.
Cudo boss Mike Sneesby said: “It enables us to combine operations (and) recognise synergies in both businesses.” Getaway Lounge CEO Timothy Hughes refused to make any comment on whether there have been job losses as a result.
In a press release, Cudo said it aims to establish a leadership position in the group buying travel category.
“While the daily deals market continues to be very competitive, we continue to focus on building scale while leveraging the strength of our strong local brands like Getaway,” said Sneesby.
Getaway Lounge was previously wholly owned by Nine Entertainment and will now sit within the Mi9 Joint Venture as part of Cudo.
The group buying/daily deals sector is under heavy pressure with intense competition and heavy costs.
Earlier this week, two of the leading group buying sites, Deals.com.au and Ouffer, announced they were merging.
This followed management attrition at both LivingSocial and Spreets.
Meanwhile, Gabby Leibovich, who is involved with daily deals site Scoopon, took a swipe at his rivals in a SmartCompany article this morning.
“From what I am hearing, we are the only ones actually making money in the group buying space,’’ he says.
“Groupon and Cudo are not going anywhere and they’re spending more money on marketing than they are making it.
“That’s not the way we like to do business. In our world when you run a business, you need to be profitable at the end of the week and we have been doing it from day one and we are still extremely profitable.
“So it’s certainly possible that a lot of the other players are not performing as well but we are not feeling that at Scoopon.”