LivingSocial Knocks 50 Percent Off Whole Foods Gift Cards

LivingSocial is partnering with Whole Foods, the grocery store known for high-end organic foods that can set you back your whole paycheck.

For today only, the runner-up in the daily deals race is offering $10 for $20 to spend on groceries.

The Washington, D.C.-based company, which is funded partly by Amazon, said it is capping sales at one million vouchers, which will be redeemable for gift cards.

It is the first time LivingSocial has offered a deal from a nationwide grocery store, although national deals have become fairly commonplace, and have been used to get new customers to sign up for the daily emails.

Earlier this year, LivingSocial sold 1.3 million $10 vouchers for $20 gift cards to

Deals of this magnitude are often viewed as a way to acquire new customers, and are not always structured like typical deals, where LivingSocial gets 50 percent of the revenue.

In Groupon’s IPO filing, it disclosed that its overall gross margins were 41.9 percent at the end of the first quarter, dropping from 45.2 percent in the year-ago period, and that the decrease was primarily due to national deals in North America, which resulted in lower margins for the purpose of acquiring new subscribers and establishing its brand.

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work