LivingSocial started life with $175 million dollar invested from Amazon in December 2010. The first step of LivingSocial is playing as a Facebook app, but after all it turned into the very most successful Groupon clone. In April, we learned that LivingSocial revenues are expected to reach $1 billion this year.
Groupon is also planning to IPO with expected valuation around $30 billion. And they hope to raise $750 million eventually. To be honest, Groupon didn’t show a great profitable package to the public, it lost $413 million in 2010 on $713 million revenues.
After Groupon’s success, a host of competitors – like Google and Facebook are joining the market. The competition will make more expensive cost for both companies to acquire new email subscribers. It’s also forcing them to cut better deals for local merchants.
Not sure if LivingSocial could copy Groupon’s style, let’s just wait and see!