LivingSocial’s Attention-Getting Amazon Offer
The daily deal sites LivingSocial and Groupon, one getting
financial backing from Amazon.com and the other (presumably) setting itself
up for a major initial public offering, went after consumers and each other
Opening up our email at 9:29 a.m. EST, we were pleasantly surprised
to see an offer from LivingSocial that allowed us to purchase a $20 Amazon
gift card (almost like giving cash to a frequent Amazon user) for $10.
out we were not the only ones happy with the deal as more than a million people
had taken LivingSocial and Amazon up on the offer by Wednesday evening. TechCrunch said
LivingSocial was selling vouchers at a clip of 85 a minute. A piece on the Mashable site
as well as others estimated that over two million might eventually go for the
deal by 8:00 a.m. EST.
Interestingly (note we didn’t say surprisingly), an offer
from Groupon came in exactly 30 minutes later (9:59 EST). We and others were
time to get your Groupon!” What that meant was we could take an additional
$10 off our first Groupon purchased between now and Feb. 2.
Sells 1 Million Amazon Vouchers and Counting – Mashable
- LivingSocial’s Amazon Deal Closing In On 1 Million Customers – Business
- LivingSocial Gets Nearly 1 Million to Sign Up for Amazon Deal – PC Magazine
- LivingSocial Hits A Million Amazon Gift Cards Sold, $20 Million In Card Value
Discussion Questions: What do you think the offers made yesterday by LivingSocial and Groupon will mean for their respective businesses?