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LivingSocial Flexes Amazon Muscle

It’s interesting here at Marketing Pilgrim to watch what our readers will push out to their social network through retweets and what they comment on. One thing I noticed is that whenever we talk about Groupon there is great interest but crickets if we talk about LivingSocial.

Well, here’s something that will catch your attention. Remember the $183 million investment that LivingSocial received? Did you notice that $175 million of it came from Amazon? Do you think that Amazon might have the muscle to make Groupon flinch? If they make offers like this one today they will (Hat Tip to Business Insider).

You may miss the deal but it might be worse to think Groupon will continue to have no real competition. I suspect Amazon might have something to say about that, don’t you?

  • Cynthia

    First off, I hate the name of the company. LivingSocial sounds like a dating site, not a deal site – what were they thinking?

    As for this deal, I see the rumor is now that LS took the full $10 loss on everyone of those deals in order to get signups. $10 a pop for an email address seems a little excessive but I suppose it’s a well-qualified lead as the person was interested enough to follow through and purchase the deal.