Google Offers - Groupon's Rival Goes Live

Search engine giant Google has began testing its Groupon rivalling daily deals service in Oregan, Portland.

The Google Offers service will be in direct competition with Groupon, which allows users to bag deal deals offered by local businesses. Google had started building its own daily deals service after Groupon rejected a $6 billion acquisition offer made by the company.

Google is currently testing the service in Portland, with more deals catering to uptown, downtown, and midtown areas in New York City and San Francisco coming soon enough.

Google, building on its massive search engine and advertising user base, will offer deals from a lot of local businesses when fully launched. Google Offers will come with a host of features including integration with Facebook, Twitter and Gmail. The service will be based on Google CheckOut.

"Today we launched a marketing campaign inviting Portlanders to sign up for a test of Google Offers -- to get great deals delivered right to their inboxes," a company spokeswoman said by e-mail to CNN.

"Offers is part of an ongoing effort at Google to make new services that give consumers great deals while helping connect businesses with customers in new ways." she added.