The local daily deals site of the Amazon along with its mobile app is going to be shut down by the company in the coming month which is not a good sign for the company’s business. The purchases can be made by the customers till December 18. According to Amazon, those vouchers will be remained as valid which are already purchased.
LivingSocial which is also a daily deal site made an announcement of its about 20 percent staff to be laid off. After few weeks of this announcement, Amazon Local also into this position. This is not the end of the story instead, Groupon which is another daily deals company had announced two months ago about removing 1100 employees form their jobs and most of them belonged to the operations internationally. The stock value of the company also decreased to half and now its worth is only $2.4 billion which was once offered by Google for $6 billion to buy it.
The profits and sales of Groupon are expected to be decreased in the third quarter which showed that the taste of the consumers has been changing very fast and it creates an alarming situation for the techs.
Amazon had once invested in LivingSocial when it was the year 2010. The valuation of the company estimated at $1 billion.
When Amazon invested in LivingSocial in 2010, LivingSocial’s valuation was estimated at $1 billion. That made it a unicorn — years before the phrase become the popular way to refer to ten-figure startups.
The availability of the Amazon to give any comment over the decision of shutting down the local was not possible immediately. It was 4 years ago when the business was launched. The only thing which was told by Amazon on its site was that the local commerce business is going to be completely left.
The customers still get help from the Amazon to be connected to the local business by the help of numerous offerings which include Prime Now Restaurants and Amazon Home Services. The reason of the disturbance for the companies is that through different ways, local merchants are marketing themselves in an effective way apart from the big discounts on daily deal sites. Facebook and Yelp are few of them.
So it has been decided by Groupon to divert the concentration to more e-commerce areas from the daily e-mails. An analyst of Sterne Agee CRT, Arvind Bhatia said that the hope has not ended for Groupon and the transformation of their business is to be done more rapidly than it could have been done. It is necessary for them to show the growth.