Written by ι Stock Market Media Group Staff — January 15, 2014
In business, timing is everything and LiveDeal, Inc. (NASDAQ: LIVE) has impeccable timing. Late last year the company began to shift the philosophy of the deal space to a more common sense approach for both merchants and consumers with the launch of its innovative new platform at www.livedeal.com. Companies like Groupon and LivingSocial have always relied upon sheer volume, the more vouchers sold, the more successful the campaign, but successful for whom?
LiveDeal may be the new kid on the online deals block, but it has introduced a platform that is exponentially more popular with restaurants in the cities where it has launched and competes with others in the industry. LiveDeal is changing the deal space from a “bulk buying” mentality to an “instant buying” mindset, and it’s starting that mission in the $660 billion dining industry. So far, the company has launched in San Diego, Los Angeles and San Francisco with expectations to move into cities all across the country.
Last Friday the online deals industry may have seen the first sign that a change is in order. LivingSocial co-founder and CEO Tim O’Shaughnessy announced he’s stepping down from the deals giant that pioneered the idea of marketing daily deals through e-mail right along with Groupon. When business waned, instead of changing the model, LivingSocial tried to generate revenue through alternative sources.
Meanwhile, LiveDeal built a platform that let’s restaurants create an instant deal themselves using the company’s business dashboard. Businesses create a promotion when they need traffic and consumers can use their mobile device to see that deal in real-time as it’s posted, claim the deal immediately and then transact directly with the restaurant.
Once restaurants satisfy their traffic needs, they can simply end the promotion. So, unlike Groupon and LivingSocial thousands of consumers aren’t paying for a voucher today that they’ll use sometime in the future, and because diners transact directly with the restaurant, customers never enter any credit card information at livedeal.com.
The concept is a “no brainer” for everyone, and the numbers prove it’s working for LiveDeal. In San Diego where the company first launched, it curates deals for over a thousand restaurants versus around 30 using Groupon. The same disparity is developing in the recently launched cities of Los Angeles and San Francisco, so clearly restaurants like the idea of controlling their own traffic and there’s not a consumer out there who doesn’t like an instant deal.