One of the challenges of running a social commerce site these days is that there is just too much demand, from both local merchants wanting to give out deals and consumers who want to try them. There are only 365 days in a year, and the daily deal format limits each city to 365 deals a year.
Sites like GroupOn and LivingSocial are hitting those limits. GroupOn is expanding its inventory by “personalizing” deals, essentially showing different deals to different people. LivingSocial is handling the issue by going hyperlocal. It will now start offering deals by neighborhood and city districts.
LivingSocial will start bringing daily deals to the hood out in Washington, D.C. and New York City. In Washington, D.C., there will be deals for The District, Montgomery County and Northern Virginia (not exactly neighborhoods, but why get bogged down in details). In New York City, you can sign up for deals Uptown (soul food), Midtown (cupcakes), Downtown (facials) and in Brooklyn (dance lessons). Again, these aren’t really neighborhoods—Brooklyn on its own is bigger than most cities in America—but they do break up the city into more manageable zones and open up the site to more deals.
This is something, in fact, that Groupon does as well in a couple cities like Los Angeles and Washington, D.C. In fact, it breaks down Washington, D.C. the exact same way: the District, Montgomery County and Northern Virginia.