Amazon halts its daily deals

Market shrank

Amazon launched the service, comparable to Groupon and other similar sites, in 2011. Back then, websites with vouchers for restaurants and other discounts were incredibly popular, which is also why Amazon entered this market, but this particular industry failed to keep the audience’s attention.

In September, even Groupon announced it would downsize considerably, cutting 1,100 jobs and withdrawing from 7 countries. Amazon Local on the other hand grown to 40 locations in the United States, but will now shut down completely.

Amazon says it will not turn a blind eye towards its local retailers as it wants to expand its Home Services program, connecting customers to local retailers. Customers who bought a voucher at Amazon Local, will still be able to use it as long as it is valid.