The app, called Instant Deals, uses location-based functions on smartphones, via a mobile app and the mobile web, to alert users to deals in their locality at certain points throughout the day. It is also accessible via LivingSocial’s desktop site. Instant Deals expire on the same day as they are promoted.

It initially launched in London today, with over 200 local merchants participating. No details of a further UK rollout have been disclosed yet.  

Peter Briffet, LivingSocial’s MD for the UK and Ireland, said, “We have created Instant Deals to reflect the fast paced, on-the-go nature of today’s lifestyles, and the focus on convenience and accessibility enables our members to snap up and try out local deals there and then.”

Instant Deals follows the earlier launch of Living Social’s smartphone app, which accounts for just over 10% of all UK redemptions, according to information released by the company.

Users of the Instant Deals app can also use it to browse existing LivingSocial promotions, which are not based on locality or limited by same-day redemption clauses.

The launch follows research by iCrossing that found that social deals and group buying market leader Groupon is starting to lose traffic, blamed on it being unable to retain relevancy and the increased competition from companies such as LivingSocial