By Allan Maurer
WASHINGTON, DC – LivingSocial offered a great deal this week, a $20 Amazon gift card for $10. People grabbed it too: more than 1.35 million of them. But the size of the deal apparently caused some technical difficulties for the rapidly expanding local deals firm.
The company, which recently received a $175 million investment from Amazon, seemed to experience a number of problems, from delays in getting out the deal emails to Snafus that led some members who spread news of the deal in hopes of getting theirs free to encounter a number of problems, according to comments on the company’s Facebook page.
Some people who shared the deal said they were charged more than once. Others said they received a message they tried to sign up for the deal more than once. Others said they got the email but did not find the discount code.
It’s Facebook account collected a good many complaints, some saying things such as “You really dropped the ball on this one.” Not a few making comments on LivingSocial’s Facebook page were irate. It will be interesting to see how they handle this. Reputation management online is a big deal because such things go viral on the Internet at the speed of light.
The company has serious competition in the local social deals space from Chicago-based Groupon and several other large players, not to mention a host of smaller ones. It’s one of the hottest spaces in Internet commerce right now.
Mashable has disclosed Google’s plans to create its own rival service, Google Offers. Google reportedly tried to buy Groupon for $6 billion, a deal the company declined. It then proceeded to raise $950 million more in venture backing.
I took the deal myself and while the email with the Amazon discount code did not show up until 2:30 a.m. Friday morning, I followed the procedure they outlined to claim it and had no difficulties myself.
We are contacting the company to see how they’re handling this and will update you upon receiving a response.
Email TJS editor Allan Maurer: Allan at TechJournal South dot com.
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