Q&A:Mohammed Hingora and his twin brother Mustafa graduated from university in January. Only 21, they say they are ready to take on the big group-buying websites with their offering, Grosper (a play on the words Group and Prosper, in case you missed it.) .
There are now more than 10 group-buying websites in the UAE. Are you not entering an overly competitive market? We are a different group-buying website. We are not really a daily deals website. We do not concentrate on spas, restaurants and hotels, we focus on the big ticket items such as cars and homes. We are also the only group-buying website to allow people to create their own groups to decide what they want.
Why did you try to focus on the big ticket items? We saw a report saying that 20 per cent of your income was (spent) on consumer items such as restaurants and hotels, but 39 per cent is spent just on living costs. Also, when you buy in a group there's more knowledge, so you are less likely to be led astray..
Will you be spamming consumers like many of the other daily deals websites? We will not be sending any e-mails until people have signed up themselves and come through our website or through Fackbook or Twitter. People will not appreciate us just sending them e-mails.
Just what the world needs: another group-buying website.
But then, you would expect this column to be cynical about a site that plugs "big ticket" items (that's our job!)
The site, called Grosper, launches next month. The new player in the increasingly crowded group-buying space is aiming at the high-end crowd, with the goal of eventually using collective power to get discounted property, cars, travel packages, and even credits at language and higher-education courses.
Regarding property, the website will initially focus on finding flats for rent rather than for sale.
But it has already had offers from developers on Sheikh Zayed Road in Dubai giving 20 to 25 per cent off as long as at least three tenants agree to sign on, says the chief executive and co-founder, Mohammed Hingora.
Crucially, those that sign up to the website will also be able to form their own groups to buy items in bulk, such as a certain set of apartments or a model of car.
If enough people join the group, the guys at Grosper will go out and negotiate to get the deal for you.
It is group buying, but taken one step further. So if you want to buy a new Mini Cooper, you just have to create a group and hope some others want to buy it too. For its hard work, Grosper takes a cut of the discount on the car.
Anyone proposing a group has to have it vetted before going online, and users will slowly build up a score based on how reliable they are at seeing deals through.
Mr Hingora thinks the number of people proposing deals will eventually become more frequent than the deals the website finds for consumers.
"Most of the big ticket items will be consumer led," he says.
Top 5: Top 5 US best-sellers in business and investing.
1 Yallabanana.com.
2 JOYoffer.com.
3 Groupon.ae.
4 Moosavings.com.
5 Dealgobbler.com.
If that is the case, maybe Grosper will be a welcome addition after all.
The Quote: There is no rational math that could possibly get anyone to the valuation Groupon thinks it deserves. Sucharita Mulpuru, an analyst at Forrester Research
