Home > DCU Ryan Academy for Entrepreneurship, Propeller Venture Accelerator > The Battle for Discounts – Groupon or LivingSocial?

The Battle for Discounts – Groupon or LivingSocial?

Mashable have just published a story by Sarah Kessler where LivingSocial, the main Groupon competitor, seems to be on course to surpass Groupon in terms of size by January 2012. This is based on recent numbers being published that show for every $10 of deals sold on either platform, $4 of them take place at LivingSocial. Not really the thing you want if you are planning a massive IPO to the tune of a rumoured $25 billion as Groupon is doing. Add to that the growing complaints from the retail sector about the push to the bottom in terms of discounts.

One wonders how much of this is due to the recession and how much will be sustainable if and when a pickup occurs? Are we really living in the era of the permanent deal? Of course deal culture is not unusual in the retail trade, if you look at advertisements by the larger retails organisations in any country. The full story about the LivingSocial revenues on Mashable here.

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