By 2012, the novelty began to wear off. The company faced a class-action lawsuit over expiring vouchers and struggled with massive losses, dropping nearly $500 million in 2011 despite high revenue.
: As the global economy improved post-recession, consumers moved away from "flash sale" sites toward more traditional booking platforms. livingsocial*getaways
: Their "Buy with 3 Friends" model was revolutionary—if a user shared a deal and three friends bought it, the original user got their getaway for free. 2. Market Saturation & "Daily Deal Fatigue" By 2012, the novelty began to wear off