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LivingSocial reportedly is converting its business model "from an e-mail service that delivers deals daily into a Web site and mobile app where people can browse through thousands of offers at local merchants at any time."

The Washington Post reports that "discounts to spas, restaurants and retail outlets catapulted LivingSocial into a multinational corporation, but creating new revenue streams that help it stay there has proven to be a challenge." The company at one point tried offering short-term hourly deals, but discontinued that effort. But the company remains focused on finding ways to expand into new categories and generate incremental revenue.
KC's View:
The story correctly makes the point that this isn't just a business shift ... in fact, it is a fundamentally different reading of the consumer.

LivingSocial, like Groupon, traditionally has depended on the ability to put before consumers deals on products and services that they may not have realized they needed. Not always, but often. (For example, I recently got a Groupon offer for picture framing services. I knew we had stashed away somewhere pictures of the kids that my wife took years ago that we'd always meant to have framed, so I dug them out and got them done. It was money I hadn't planned to spend, and I really liked the results, so I may go back to that store in the future ... though I also may wait for another Groupon.) But in this new incarnation, LivingSocial will depend on people like me going to its site and seeking out deals on products and services ... which is an entirely different thing. Not necessarily less effective, but different.