Zoodango: It’s Mostly about the Interface

TechFlash has a nice report on new local community/search competitor Zoodango:

Here’s the most interesting paragraph:

Zoodango has a 4-pronged revenue model. It plans to charge consumers a monthly fee to gain access to premium coupons, 2-for-1 dinners and the like. It also plans to charge merchants to submit coupons and other promotions to the site. Later this year, it also will unleash what Sun calls “geo classifieds” — essentially helping people find products for sale from those who live close by. Finally, it has a licensing deal in place with an undisclosed partner, a deal that Sun vaguely described as a “virtually untapped market.”

I was skeptical of Yelp’s chances when it entered the market so I won’t dismiss this site. However, there’s nothing right now (see the above paragraph) to differentiate it — except an interface that looks slightly different. There will apparently soon be an iPhone app and mobile site (now must-haves for local destinations).

The “local” market is very large on paper and endlessly tempts entrepreneurs who feel that the existing sites are deficient in some way. And angels/VCs keep funding them for the same reason. Few people when they get into the segment understand fully what they’re up against.

I wish Zoodango luck — they’ll need it.

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