Google launches Groupon competitor in Oregon

The first market that will get Google's new Groupon competitor will be--drum roll, please--Portland, Ore.

The search giant announced Thursday that it will be launching the beta version of its Google Offers coupon and discount deals service in Portland. Google first revealed its plans for the Groupon-like service in January.

Google has already put up a page where people can sign up to receive deals that will be e-mailed each day. Like the Groupon service, users can receive discounts of 50 percent or more at local businesses. But unlike Groupon, the deals won't need to hit a user threshold before they're valid.

Google says it will expand the service soon to other cities, including New York and San Francisco.

"We're working hard to get Google Offers up and running in Portland", the company said on its Help page. And it said services in other cities will be launched "in the near future."

Google Offers was announced a month after Groupon reportedly rejected the company's $6 billion bid to buy it. Groupon, which is rumored to be doing $2 billion a year in revenue, has since increased its coffers by raising $950 million in funding. Earlier this year, the company was valued at about $6.4 billion.

As Google enters the social-buying market, it faces not only Groupon as a competitor but also several Groupon clones. LivingSocial, which is backed by Amazon.com, is also a strong player in the market. Earlier this year, it made headlines and fans by selling more than a million $20 Amazon gift cards for $10 each.

This market is important for Google because it gives it access to more revenue from local search and advertising.