Facebook Launches “Social Deals” To Challenge Groupon & LivingSocial

Facebook Launches Social Deals” To Challenge Groupon & LivingSocial. Last fall, the company laid off another 200 folks All advised, LivingSocial has laid off about 900 workers over the past 18 months. Day by day-deals firms like LivingSocial and Groupon had been a sizzling commodity in the late aughts, but have floundered in latest months.\n\nGroupon has shut down some of its international branches and laid off workers, and Amazon, which owns part of LivingSocial, shut down its own day by day-deals service, Amazon Local , in October. LivingSocial’s deals platform was supposed to be a means for small businesses to sell their excess inventory and sales, and to attract new prospects who may not otherwise learn about them.\n\nMerchants bought into prices set by firms like LivingSocial, offering their companies at a discount, but they’d lose money on these transactions over time. Lately, LivingSocial’s numbers have slumped alongside the broader deals trade. In 2012, its revenue was $347 million; in 2014, the 12 months LivingSocial had a $a hundred million web loss, it was $231 million.\n\nThe actual fact of the matter is that vouchers are yesterday’s news,” a LivingSocial board member advised The New York Instances a number of months ago. Thakar’s new vision for LivingSocial would let users get discounts by linking their credit card with their LivingSocial account and using it at taking part stores.\n\nA 12 months ago, the calculus of a day by day deal seemed simple: A merchant partners with a provider, presents a discount to a large decide-in audience, and then watches its customer base explode. Groupon, unquestionably the alpha of the pack (see sidebar, next page), continued to assemble a portfolio of purchasers and prospects that culminated in 2011 revenues of $1.6 billion, up more than 419% from the 12 months prior.