Washington, DC — With the concept of online daily deals still in its relative infancy, companies like DC-based LivingSocial and Groupon will need to evolve over the next few years to stay ahead of the fast-growing market, according to LivingSocial CEO Tim O’Shaughnessy. In an interview with Business Insider, O’Shaughnessy called the current daily deals craze “the entre” that will lead to an entire new form of local commerce. “I think this is first, second inning at this time,” said O’Shaughnessy. “You’ll start to see it be less about the daily deal and more about how do you connect consumers and merchants in an online transaction way to behave offline. I think it’s going to be ripe with innovation over the next couple years.” LivingSocial recently began testing real-time mobile deals in DC, allowing users to access nearby deals — such as restaurant lunch specials — from their wireless devices. O’Shaughnessy also said the company’s “Escapes” business, which offers regional travel deals, has been among its fastest-growing segments. The complete interview is at the link below.