They enter a different market with established competitors, Grubhub and Seamless. LivingSocial have given up being market makers and are market invaders, using their financial resources and urban visibility to capture a slice of the market Like Seamless and Grubhub, LivingSocial is not doing the actual deliveries but processing them online. In 26 markets, this change has already gone into effect (but not New York or Los Angeles). LivingSocial has launched yet another service, replacing their instant deals with takeout and delivery. Despite their marketing prowess from group deals, they haven’t been successful in these endeavors and are often abandoned for another pet project. LivingSocial, and to a lesser extent Groupon, are dubiously fishing around for new services,as if they don’t have a long-term plan.
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