Google decided to shut down its online insurance site, dubbed Google Compare, after it failed to generate substantial profit. The US and UK sites will start winding this month and will finally close on March 23.
The news came as a surprise to Compare.com CEO, Andrew Rose, who told the Insurance Journal, “It was a bit shocking today to hear that they are exiting.” Google Compare, which is an online comparison shopping site for credit card insurers, mortgage lenders and auto insurers, failed to drive adequate success. Hence, the online advertising technology firm is now focused upon future innovations and AdWords for ploughing back good return on investment, reports Insurance Journal.
Despite the popularity of online comparison shopping in the United Kingdom, Google Compare failed to find a strong foothold in the region. According to Rose, the result is confusing. The Wall Street Journal, however, reported that Google could not attract the biggest lenders and insurers to its site, thus inviting only a few people to compare. This led to very low number of advertisers to the site from whom Google earned money.
Earlier, Google earned huge success when comparing shopping sites for air travel and e-commerce. However, auto insurance service is far more complicated and involves requiring approval from regulators and procuring detailed personal information from users. According to Joshua Dziabiak co-founder of insurance-shopping site the Zebra, “Insurance is complicated. It’s not like selling a flight or shoes online.”
Google had opened a similar comparison site in 2011, called Google Advisor. The site was meant to help consumers compare financial products like credit cards, accounts, etc. But the site was closed in the same year.
Although Google’s failed to earn success this time around from Google Compare, the company is trying every bit to make a successful move into financial services, which are majorly controlled by credit unions, banks and financial firms, reports Nasdaq.