LivingSocial Announces $175 Million Investment From Amazon

  • Share
  • Read Later

Online shopping powerhouse Amazon has invested $175 million into daily deal site LivingSocial.com, the company announced Thursday.

(More On TIME: Groupon Becomes Social Shopping Network)

While we wait to hear about the possible purchase of competitor Groupon by Google via a rumored $6 billion deal, it appears Amazon and LivingSocial have also tied the professional knot. While Tech Crunch reports that LivingSocial is on track to bring in $500 million next year, it only commands 8% of the group buying market (even with more than 10 million subscribers), whereas Groupon, the unquestionable favorite, controls 79%. So whereas Groupon could stall a large-company acquisition, Amazon’s investment is LivingSocial’s greatest opportunity to encroach on more of Groupon’s empire.

“To be the biggest player in the local commerce space there is no one better to work with than Amazon,” CEO of LivingSocial Tim O’Shaughnessy said in press release. “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.”

(More On Time: 5 Online Scams To Avoid This Year)

The race for daily deal domination has come again. But can Amazon and LivingSocial cook up a scheme that will trump Groupon’s newly announced social shopping network? It seems unlikely, even with Amazon’s natural e-commerce appeal – though one Amazon.com-centric deal could put the company on a very nice path.

0 comments