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{{Advert|date=October 2012}}
{{Advert|date=October 2012}}


'''LivingSocial''' the local marketplace to buy and share the best things to do in your city.
'''LivingSocial''' is a web site that offers coupons to its members.


==Business model==
==Business model==

Revision as of 19:06, 16 November 2012

LivingSocial
LivingSocial logo.
Type of site
Electronic commerce
Available inEnglish and others (for 27 countries)
HeadquartersWashington, DC
OwnerLivingSocial Inc.
Created byTim O'Shaughnessy, Aaron Batalion, Eddie Frederick, Val Aleksenko
URLLivingSocial.com
CommercialYes

LivingSocial is a web site that offers coupons to its members.

Business model

LivingSocial offers new deals each day to its members who subscribe via email. Once a deal has been purchased, members are e-mailed their redemption vouchers the following business day. In addition, there is a referral scheme which makes the offer for a member free if three referrals from the member purchase the offer. Members must either print out their vouchers or download the LivingSocial app on their Android, iPhone, iPad, or iPod to redeem.

LivingSocial also provides new customer leads at no upfront cost to merchants, however LivingSocial takes a cut of the deal revenue.[2] Merchants can also control what the offer involves and may choose to cap purchases, as not to overwhelm their business.

Products

Daily Deals

Daily Deals are offers of discounts on various services and products. “Consumers find hometown deals they like on the sites, sign up, persuade others to do so, then get a cut-rate dinner, haircut, yoga class or other product or service.”[3]

Takeout & Delivery

On November 15, 2011 LivingSocial launched a test of new online food ordering and delivery features in Washington, DC as part of its Instant service. On March 29, 2012 the company pivoted its Instant service to focus on Takeout & Delivery nationwide.

Takeout & Delivery allows eager eaters to order food for pickup or delivery from thousands of local restaurants, quickly, effortlessly, and at a value. Takeout & Delivery also offers LivingSocial’s restaurant partners an opportunity to showcase their menus online and bring new customers through their doors.

Escapes

LivingSocial Escapes is a site offering discounts on travel. LivingSocial Escapes Deals last seven days; the margins and the pricing are not the same as the daily deal structure, but discounts (value) are significant.[4] LivingSocial Escapes’s first package, a rock star weekend in Chicago, included a discounted stay at the Hard Rock Hotel, drinks at its bar, 10 downloads from iTunes and a Gibson guitar rental. New packages are announced every Wednesday.[5] Tim O’Shaughnessy, CEO of LivingSocial, said the brand is about offering “really cool things to do at great value” and this new travel experience is consistent with that notion.[4]

Adventures

After LivingSocial's acquisition of UrbanEscapes in October 2010, the company launched LivingSocial Adventures. LivingSocial Adventures includes deals like “Zen Escape Yoga Hike” and “Boulder and Brew Tours”.[6]

Families

September 2010, LivingSocial introduced LivingSocial Families. Family Edition deals offer the same discounts but for family-oriented activities like zoos, museums, day trips, aquariums, art classes, and more.[7][8]

History

LivingSocial was founded as Hungry Machine in 2007 by four employees from Revolution Health Group. The company's first major application was their Visual Bookshelf application on Facebook which allowed users to catalog and share their favorite books with friends.[9] Later, the company released PickYourFive and other Polls applications, making LivingSocial the number one application developer on Facebook as measured by page views.[10] After acquiring BuyYourFriendADrink.com in 2009, LivingSocial launched a daily deals business, which since has become its highest grossing venture to date.[11]

Funding

The company received $5 million in Series A funding in June, 2008 from Grotech Ventures and Steve Case. In January 2010, LivingSocial raised $5 million in Series B funding from Grotech Ventures and AOL Founder Steve Case. Two months later, on March 11, 2010, the company announced a $25 million round led by U.S. Venture Partners, Grotech and Case. LivingSocial then acquired $14 million Series C round, from Lightspeed Venture Partners with U.S. Venture, Grotech and Case contributing.[12] Most recently, US Venture Partners and Grotech invested an additional $10.23 million of equity offering to the company. Its fundraising for 2010 comes to $50 million.[13] In December 2010, LivingSocial received a $175 million investment from Amazon.com.[14] LivingSocial also received an additional $8 million investment from Lightspeed Venture Partners.[14] In March 2011, less than four months after the $175 million Amazon investment, LivingSocial raised an additional $400 million from prior investors like Amazon and Lightspeed Venture Partners, and several new ones including T. Rowe Price and Institutional Venture Partners. As of early April, LivingSocial is valued at more than $3 billion.[15]

In 2011, LivingSocial completed a $400 million round of funding valuing LivingSocial at $3 billion.[16]

Acquisitions

  • In October 2010, LivingSocial announced acquisition of social adventure company Urban Escapes, which led to the launch of LivingSocial Escapes and LivingSocial Adventures.[17]
  • In November 2010, LivingSocial bought $5 million controlling stake in Australian social shopping site Jump On It.[18] The acquisition makes LivingSocial the biggest social shopping player in Australia.[19]
  • In January 2011, LivingSocial acquired a majority stake in LetsBonus, which now operates in Spain, Italy, Portugal, Argentina, Uruguay, Chile, Colombia and Mexico. Launched in September 2009 in Barcelona, Let’s Bonus was an early operator of a collective buying service in Europe, particularly in the Spanish market.[20]
  • In March 2011, LivingSocial acquired InfoEther, a Ruby/Rails consultancy.[21] Ruby on Rails is the platform upon which LivingSocial runs.[22]
  • In June 2011, Dubai Based GoNabit, an Arabic website for daily deals, was acquired by LivingSocial. GoNabit operates in the UAE, Egypt, Lebanon and Jordan, and claims to have saved consumers more than $5m in 2010-2011.[citation needed] Group buying websites typically sign up a range of businesses to offer discounts, and take a percentage of the revenue.
  • In June 2011, LivingSocial acquired DealKeren, which offers daily deals in Indonesia, and its parent company Ensogo, which offer daily deals in Thailand and the Philippines. Officially launched in June 2010, Ensogo currently has more than 800,000 members[citation needed]. Ensogo claims that its members have saved more than $25 million USD in 2010-2011[citation needed]. Ensogo is backed by Rebate Networks, an international venture capital group specializing in social commerce.[23]
  • In April 2012, ONOSYS, a mobile and online ordering providor, was acquired by LivingSocial. ONOSYS operates in Cleveland, Ohio, and services over 75 restaurant chains including Papa Johns International Inc., Panera Bread, and Applebee's International Inc.[24]

References

  1. ^ "Livingsocial.com Site Info". Alexa Internet. Retrieved 2012-08-02.
  2. ^ "Big Deal". Washingtonian Magazine. 2010-03-2010. Retrieved 2011-04-04. {{cite web}}: Check date values in: |date= (help)
  3. ^ O'Donnell, Jayne; Huggins, Rachel (2010-05-14). "Crave coupons, bargains? Group-buying sites offer deals". www.usatoday.com. Retrieved 2011-04-13.
  4. ^ a b "LivingSocial Releases Escapes, Weekend in a Box". www.screenwerk.com. Retrieved 2011-04-13.
  5. ^ Drake, Monica (2010-12-20). "LivingSocial Offers Weekly Travel Deals". www.nytimes.com. Retrieved 2011-04-13.
  6. ^ "LivingSocial brings Urban Adventures". www.socialtimes.com. Retrieved 2011-04-13.
  7. ^ "LivingSocial Family Edition arrives in Milwaukee". www.milwaukeeconsumer.com. Retrieved 2011-04-13.
  8. ^ "LivingSocial Launches Family Edition in Three New US Markets". www.prnewswire.com. Retrieved 2011-04-13.
  9. ^ Hart, Kim. "LivingSocial Takes Top Spot Among Facebook Apps - Post I.T. - A Technology Blog From The Washington Post - (washingtonpost.com)". Voices.washingtonpost.com. Retrieved 2010-11-19.
  10. ^ "LivingSocial Becomes the Largest Facebook Application Ever". Allfacebook.com. Retrieved 2010-11-19.
  11. ^ "Citybizlist Washington DC - Hungry Machine/Living Social Devours Another $10.2M - cbl". Dc.citybizlist.com. Retrieved 2010-11-19.
  12. ^ April 29, 2010 Jolie O'Dell View Comments (2010-04-29). "Groupon Competitor LivingSocial Has Now Raised $44 Million This Year". Mashable.com. Retrieved 2010-11-19.{{cite news}}: CS1 maint: numeric names: authors list (link)
  13. ^ Swisher, Kara (2010-09-16). "LivingSocial Brings Funding Up to $50 Million, Launches in 25 New Cities | Kara Swisher | BoomTown | AllThingsD". Kara.allthingsd.com. Retrieved 2010-11-19.
  14. ^ a b December 3, 2010 Riley McDermid (2010-12-03). "Group buying startup LivingSocial starts living large with $175M from Amazon". VentureBeat.com. Retrieved 2010-12-03.{{cite news}}: CS1 maint: numeric names: authors list (link)
  15. ^ April 4, 2011 Evelyn M. Rusli. (2011-04-04). "In Race With Groupon, LivingSocial Raises $400 Million". New York Times online.com. Retrieved 2011-04-06.{{cite news}}: CS1 maint: numeric names: authors list (link)
  16. ^ Klein, Allison (2011-04-05). "LivingSocial, based in D.C., raises $400 million as it vies with Groupon". www.washingtonpost.com. Retrieved 2011-04-06.
  17. ^ "LivingSocial Continues to Differentiate with Purchase of Urban Escapes". www.blog.kelseygroup.com. Retrieved 2011-04-13.
  18. ^ "LivingSocial Buys 5 million controlling stake in jump on it". www.dailydealmedia.com. Retrieved 2011-04-13.
  19. ^ "LivingSocial Expands into Australia with 5m investment in jump on it". www.socialtimes.com. Retrieved 2011-04-13.
  20. ^ "LivingSocial acquires a majority stake in Let's Bonus". www.fusiondiginet.com. Retrieved 2011-04-13.
  21. ^ "LivingSocial gains wealth of ruby on rails expertise with Infoether acquisition". www.fusiondiginet.com. Retrieved 2011-04-13.
  22. ^ "LivingSocial acquires rubyrails consultancy infoether". www.dctechsource.com. Retrieved 2011-04-13.
  23. ^ "LivingSocial Expands Daily Deals Empire; Buys Ensogo, GoNabit And DealKeren". TechCrunch.
  24. ^ "LivingSocial Buys Online Ordering System Provider ONOSYS". www.bloomberg.com. Retrieved 2012-04-26.
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