Is LivingSocial a real website?
LivingSocial is an online marketplace that allows its registered users to buy and share things to do in their city. Plus, the LivingSocial mobile app is free and easy to use!
Does Groupon own LivingSocial?
Yesterday it was announced that Groupon, the fastest growing company in history, acquired LivingSocial, the second fastest growing company in history. The short answer: Groupon is absolutely legitimate, but the experience depends on how (and where) you use it. Founded in 2008, Groupon, Inc. NASDAQ: GRPN) is a publicly traded company that connects millions of customers with verified local businesses every year.Groupon – About the company Groupon is a public company based in Chicago (United States), founded in 2007 by Andrew Mason, Brad Keywell and Eric Lefkofsky. It operates as an Online marketplace offering deals on multi-category products and services.
What happened to LivingSocial?
In October 2016, Groupon, the company’s longtime rival, absorbed LivingSocial. It paid nothing for a company that had raised nearly $1 billion from investors, according to Crunchbase, and was valued at nearly $6 billion at its height. Google offered to buy Groupon, then a two-year-old local e-commerce startup, for $5. But the deal fell through for three main reasons, according to writer Frank Sennett, the author of a forthcoming book on the company. Google offered a $800 million breakup fee.Why the downfall? Critics have long called Groupon’s model unsustainable. Customers get subpar services from swamped businesses, while businesses get a bad deal in the long term. One analysis found only ~20% of Groupon buyers returned for full-price purchases.
Why did people stop using Groupon?
The customers they won with damagingly low deals on Groupon did not become loyal customers but moved on to exploit the next amazing deal, leaving small businesses with only the costs. As a result, they pulled back from their deals, and Groupon had to expensively acquire new businesses to keep the deals site full. It is not Groupon and Wowcher that are slashing the prices – it is the advertisers. They charge the advertisers a fee per sale made and that is how they make money. The advertisers make money because what they are selling does not cost them as much as they typically sell it for in the first place.
What went wrong with Groupon?
Groupon’s business model relied heavily on offering deep discounts to attract customers, which did not result in long-term customer loyalty for the merchants. Many businesses complained that the deals were not profitable and did not lead to repeat customers. Customers purchase social coupons for their deep discounts. While the low price is an incentive for new customers to try out the product or service offering, many will expect to pay the same low price later on; in a competitive market, any price increase may be viewed as a reason to take their business elsewhere.