Amazon Invests $175 Million in Local-Deals Site LivingSocial
By Ina Steiner
Amazon.com invested $175 million in LivingSocial, a deals site for local businesses and restaurants similar to Groupon, which is rumored to be considering a $6 billion offer from Google. LivingSocial also secured an additional $8 million investment from Lightspeed Venture Partners.
LivingSocial has 10 million subscribers and over 120 locations in the U.S., Canada, UK, Ireland and Australia. It describes itself as an online source for people to "find handpicked experiences at a great value, inviting anyone to save up to 50% to 70% each day on their favorite restaurants, spas, sporting events, hotels and other local attractions in major cities."
LivingSocial will use the money to expand its locations. It said it is currently booking revenues of more than $1 million a day on average and is projected to book well over $500 million in revenue in 2011.
It recently acquired adventure company Urban Escapes and is launching new verticals including LivingSocial Family Edition, Campus Deals and LivingSocial Escapes, a travel site that offers savings on curated adventures.
About the author:
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to email@example.com.
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