SAN FRANCISCO Nov 13 Online daily deals service
LivingSocial suffered a website outage that extended into a
second day on Wednesday, leaving its customers with no way to
log in to the struggling site.
"Throughout the night, our teams have been working nonstop
to address the issue and attempt to ensure that it never happens
again," the company said in a blog post. "We have isolated the
technical issue and are pushing forward to have the site up and
running again as soon as possible."
A spokeswoman declined to estimate when that might be, or to
comment beyond the blog post.
The company doesn't believe financial information or
consumer or merchant data was compromised, the blog post said.
The outage extends a run of setbacks for LivingSocial, which
is struggling with declining sales and continuing losses even as
rival Groupon grows and narrows losses.
Earlier this year, LivingSocial suffered a cyber attack,
resulting in 50 million subscribers needing to change their
account passwords and leading to a drop in sales.
In a filing last month, online retailer Amazon,
which holds a 31 percent stake in LivingSocial, said it valued
LivingSocial at $48.4 million, down from almost $1 billion in
The company attracted a great deal of consumer buzz around
2010 and 2011, when the concept of daily deals was relatively
new and the company ran promotions such as a $10 voucher that
gave customers $20 worth of groceries at Whole Foods.
But it has had trouble living up to its early promise.
Last week, Groupon said it would buy Ticket Monster,
LivingSocial's ecommerce business in South Korea, in a cash and
stock deal worth up to $260 million.
Besides Amazon, LivingSocial's backers include Grotech
Ventures, Revolution LLC, Lightspeed Venture Partners, and T.