Facebook testing a new service to compete directly with Groupon and LivingSocial.

Facebook testing a new service to compete directly with Groupon and LivingSocial.

Posted on March 17th, 2011 by admin

 

With over 600 million users, Facebook has an enormous end user base to market these new coupon options to help local businesses drive new customers.

Both Groupon and LivingSocial have catapulted their revenues by aggressively marketing to local businesses and sharing in the revenue from discount deals.  With such a massive installed based in place, Facebook can bypass much of the legwork, and cost, of getting companies signed up since they already have a trusted relationship with its users.

Anytime Facebook makes a move into a new market space competitors need to watch their backs.

Maybe that $ 6 billion offer from Google to purchase Groupon a few months ago is looking a lot more enticing!

See the full article at “Eweek”;

http://www.eweek.com/c/a/Web-Services-Web-20-and-SOA/Facebook-Gets-Groupon-in-its-Crosshairs-with-Local-Deals-195384/