NEW YORK (TheStreet) -- LiveDeal (LIVE) has been one of the hottest stocks to start 2014, rising 300%.
This morning, shares are surging another 15% as the Las Vegas-based e-commerce company said traffic jumped 153% in January as compared to the same month a year ago. The increase was fueled in part by LiveDeal's "Instant-Deal" restaurant platform.
LiveDeal.com began in September with a service that connects merchants and consumers through a platform that uses geo-location, enabling business to send customers instant offers. LiveDeal considers its platform to be the first of its kind -- one that provides restaurants with the flexibility to promptly distribute customized offers to attract customers.
LIVE data by YCharts
Before LiveDeal.com, restaurants often had difficulty generating profits from daily deals because they had to deal with a third partythat would not only charge fees but would also place limitations on the types of daily deals that could be offered. Often, restaurants wouldn't be able to even choose the discount amount or the voucher redemption information.
These limitations inspired LiveDeal to build a platform that would maximize the flexibility to allow restaurants to best manage their needs. LiveDeal is clearly after a food and beverage industry with annual sales of $680 billion. They're also keen to cut into Groupon (GRPN) without question the industry leader.
Groupon's business model is certainly ripe for competition. At present, Groupon limits restaurants to roughly three daily deal promotions per year. The Chicago-based company also requires consumers to input their credit card and to purchase the voucher directly from them, thereby charging restaurants a third-party fee.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV