Earlier this morning Yipit posted new data for August on its blog that shows Groupon gaining and LivingSocial losing some ground. The conventional wisdom is that Groupon is about to implode. Not so says the Yipit data:
- Groupon’s revenue increased 13% from July to $121 million, a $1.5 billion annual run rate.
- LivingSocial’s revenue declined 3% to $45 million, a $540 million annual run rate. August was the second consecutive month that LivingSocial experienced declining revenue in North America.
- The North American Daily Deal industry resumed growth in August. Industry revenue and number of deals offered increased 9% from July.
After Groupon and LivingSocial most sites are doing relatively little revenue, including Google Offers. The combined “run rate” of Groupon and LivingSocial, according to Yipit, is about $2 billion in North America. Yipit also said that in its first full month “Groupon Getaways accounted for $9.6 million of gross revenue” (vs. $5.7 million last month).
Separately we may be entering into a new phase of market consolidation in the deals segment. While M&A has been a consistent part the world of daily deals from the beginning, there now may be something different going on as companies try to build additional scale, add capabilities and eliminate excessive competition.
JigoCity is one of the few social commerce companies operating in more than five countries with plans to expand into 2 to 4 additional countries by year end. JigoCity generated revenue of approximately $600,000 in July and approximately $1.1 million in August and has rapidly grown its user base to over 1 million members.
Is this just more “one off” deal-company buying or do you agree that consolidation may be starting? Give me your predictions and what criteria buyers may be using to evaluate deal vendors.