Due to a shift in strategy, daily deals site LivingSocial reported a $25 million loss in its third quarter.
LivingSocial is in the midst of a long-term strategy, moving the company away from the business model that led to its initial success: providing shoppers discounts to restaurants, stores and other businesses via daily emails. Now, customers can access a large pool of deals on its Web site at any time.
LivingSocial executives hope that the strategy shift will result in more sales and revenue, but that has not happened yet, according to The Washington Post.
The company realized a net loss of $50 million during the first quarter of 2013 and a net loss of $31 million in the second quarter.
The deals site's continued losses were "anticipated, and we made great changes to the platform and we're feeling like we're in good shape," a person familiar with LivingSocial's finances who was not authorized to speak publicly, told The Washington Post. "We're going to see more impact down the road....There is innovation on the way."
For more, see:
This The Washington Post article
Rue La La Hit With Lawsuit Over Vouchers That Expire Too Soon
Groupon Plans Warehouses, Wants To Compete With Amazon, Costco
Starbucks' first-ever Groupon coupon crashes site