Groupon Appears to Lose Market Share as Competition Grows

Groupon appears to be losing market share in the social shopping market, with LivingSocial gaining enough share to pull even with Groupon, according to an analysis by yipit.

LivingSocial has more than 25 million members, meaning a growing portion of Groupon subscribers are now subscribed to at least one more deal service.

Users who had previously been members of services like DailyCandy, Thrillist, UrbanDaddy, Travelzoo or OpenTable have now started to receive Daily Deals from them as well, the yipit analysis suggests.

LivingSocial’s average revenue per offer is approximately $24,000, while Groupon’s is now $13,000.

Groupon might also be saturating a narrow demographic of young, single-oriented target audience where 68 percent of subscribers between the ages of 18 to 34, while 64 percent of LivingSocial’s is 34 and above. Groupon’s competitors may have a broader appeal as the Daily Deal universe expand beyond young singles, as well.

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