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Video Steve Jobs lives on in comic book World's first electric car hits the road - again Critics raise the alarm over U.S. police drone plans TV makers battle at CES Follow Reuters Facebook Twitter RSS YouTube Read Ohio woman loses appeal on "White Only" pool sign 12 Jan 2012 Looming downgrades, Greek debt impasse hit euro zone | 3:35pm EST Obama wants power to shrink government in election year 2:44pm EST Madonna not totally sharing the love with Lady Gaga? 2:43pm EST Gunman kills 3 in North Carolina workplace shooting 4:09pm EST Discussed 202 Huntsman outraged at ad targeting adopted daughters 126 Buffett to GOP: You pay and so will I 125 Gay marriage a threat to humanity’s future-Pope Watched South Korean soldiers naked in snow in Pyeongchang Tue, Jan 10 2012 Critics raise the alarm over U.S. police drone plans Wed, Jan 11 2012 U.S. Marines probe video of men urinating on Taliban corpses Wed, Jan 11 2012 Another Groupon rival pulls back on deals effort Tweet Share this Email Print Related News Groupon grew while major rival shrank in November: report Wed, Jan 4 2012 Groupon shares drop on concern about merchants Tue, Jan 3 2012 Retail sales resilient in final holiday stretch Wed, Dec 28 2011 Zynga falters in debut, sheds doubt on IPO market Fri, Dec 16 2011 Analysis & Opinion Operating on an implant scandal Tech wrap: RIM co-CEOs seen losing chairman role Related Topics Tech » Media » By Alistair Barr SAN FRANCISCO | Fri Jan 13, 2012 3:48pm EST SAN FRANCISCO (Reuters) - Online retailer Rue La La, has stepped back from its Rue Local daily deal business, the latest Groupon Inc rival to hit trouble. Rue Local, which offered daily deals in cities including New York, Los Angeles and Washington D.C., is outsourcing its sales force to another company, a spokeswoman said on Friday. She declined to identify the company. Smartbargains.com, another business run by Rue La La, will be consolidated into the main company, she added. The changes resulted in an 11 percent reduction in jobs at Rue La La, which is part owned by eBay Inc, the spokeswoman said. Several Groupon rivals have ratcheted back efforts to compete in recent months. Part of the problem is that the creation of daily deals involves hiring a large and costly sales force to contact merchants and negotiate discounts. Facebook ended an early attempt at daily deals last year and Google outsourced the creation of deals to other daily deal companies. Yelp reduced the number of deals it offered. Rue La La's main business is flash sales, which are heavily discounted online sales of high-end apparel and other items for limited time periods. The company "has continued to see dramatic growth with nearly $300 million in sales in 2011 and similar growth planned for 2012 and beyond," the Rue La La spokeswoman said on Friday. (Reporting By Alistair Barr; Editing by Steve Orlofsky) Tech Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. 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