Skip to main content

In latest news, Facebook has chosen to broaden its depth by venturing out into the quickly growing world of local coupon deals. With this move, Facebook will compete directly with players such as Groupon and LivingSocial, as well as Google Offers (launched last week). Facebook’s plan has been in the works for some time; last month, Facebook allowed users who wanted to receive offers via email to Like the service.

The initial offering will only be available in five cities- Dallas, Austin, San Francisco, Atlanta and San Diego, but is planning to roll out to other cities as deals are refined.

Facebook believes that their deals have the potential to rival sites like Groupon and LivingSocial because the Facebook platform hosts a portal in which users already share this kind of information. Additionally, these coupon sites use Facebook to get new customers and to get them to share deals with their friends. With Facebook Deals, it will all be done within one platform and will be tightly integrated into the social network. Facebook leaked to the New York Times that users would be notified via email alerts, as well as pop-ups and stories in their mini feeds.

According to a spokeswoman for Facebook, all deals offered will be “social experiences” meaning they are “things you can do with your friends.” Examples of the new breed of Facebook Deals from brands include “unlimited bowling with six friends for an evening for $60 (75% off)” and “luxury winery tour and 25% off all wine purchases for $50.”

The program will let users see discount offers from 11 other partner services, including Gilt City, Tippr, PopSugar City, and KGB Deals.

Most importantly, users will be able to buy Deals using  major credit cards as well as Facebook Credits. This move could be extremely beneficial for Facebook Credits, since until now, users could only use the credits to buy virtual goods on the site.

Let us know what you think about Facebook Deals (or about any of the other coupon sites) in the comments below.