Facebook trials group buying deals
I think Facebook has some smart ideas when it comes to group buying but I’m not sure that it will ever compete with the likes of Groupon. Groupon (www.groupon.co.uk) has such a huge following in the UK and globally, so it will be interesting to see how Facebook will try and get any sort of a grip on this marketplace – it’ll certainly have to differentiate itself somehow. ‘Deals’ is rolling out in 5 US cities this week – if it makes its merry way to the UK, we’ll assume the initial response has been positive!
Facebook is trialling a Groupon-style group-buying offering in the US.T
The Deals service launches in five US cities this week, using the social and sharing features of the site to get people to recommend deals to each other.
Facebook has initially partnered with 11 companies, including restaurant reservation service OpenTable and online ticket seller Viagogo.
While most of the service is around deals, some of the offers will also be experiences unlocked by people sharing with their friends, such as backstage passes to concerts.
The service will rival popular group-buying sites Groupon or LivingSocial, although the sharing mechanism used for rewards is different. Groupon allows people to share via social networks and email but they’re only guaranteed the deal once a certain number have been bought. Living social rewards people once three friends have taken up the deal.
Facebook has confirmed that Deals is launching today but details of a wider roll out and the launch offers are not yet known.
“We’ll test a new feature for our Deals product that allows people to buy deals on Facebook and share them with their friends. Local businesses will be able to sign up to use this feature soon and people will be able to find offers in the coming weeks,” said a spokeswoman for Facebook.
The deals will first be live in Atlanta, Austin, Dallas, San Diego and San Francisco.
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