While controversy swirls around Amazon.com’s decision to pull hosting for WikiLeaks and rumors churn about Google’s plans to acquire Groupon, LivingSocial is making some headlines that may ultimately affect the social fates of both companies.
LivingSocial just announced a $175 million investment from Amazon, as well as an additional $8 million investment from Lightspeed Venture Partners. The company said it will use the funds to “maintain a steady drumbeat of worldwide launches and overall business growth.”
With more than 10 million subscribers, LivingSocial is available across the U.S., Canada, United Kingdom, Ireland and Australia. The company reports revenues of more than $1 million a day, on average, and is expected to post well more than $500 million in revenue in 2011.
LivingSocial vs Groupon
“To be the biggest player in the local commerce space, there is no one better to work with than Amazon,” said Tim O’Shaughnessy, CEO of LivingSocial. “As the social-shopping space continues to heat up, LivingSocial is committed to staying focused on providing the high level of quality that consumers and merchants have come to expect when working with us.”
LivingSocial is a competitor to Groupon. Essentially, the site is an online hub that lets consumers find restaurants, shops, activities and services in their area. The company has dedicated area experts in every location working directly with business owners and researching the best in local adventures. The deals on the site typically offer customers between 50 percent and 70 percent savings.
Recently, LivingSocial expanded its business by acquiring adventure company Urban Escapes and launching three new verticals, including LivingSocial Family Edition, Campus Deals, and LivingSocial Escapes, a travel site that offers savings on curated adventures.
Internet Evolution 3.0
“Beginning in 1999 and 2000, we saw a lot of activity in what you could call the natural evolution of e-business. Companies were trying various…