Starbucks Corp, the world’s largest coffee chain, is offering consumers a deal this week through daily-deal company LivingSocial, a vote of confidence in Groupon Inc’s main rival.
LivingSocial, part owned by Amazon.com Inc, will offer a $10 Starbucks gift card for $5 on Wednesday. Customers have six months to claim the card, which can be used across the United States, according to company executives.
Starbucks plans to offer the deal to members of its rewards program, via email, Tuesday evening, giving loyal customers the first chance to buy. The companies plan to sell at least one million deals, they said.
Shares of Groupon, the world’s largest daily deal company, have slumped since its IPO last year. That has cast doubt about the viability of the daily deal business. Groupon stock hit a record low of $4 on Tuesday. It was unchanged at $4.15 in afternoon trade.Read More