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Facebook is Eating Foursquare’s Lunch

facebook placesWhen Facebook Place was first introduced, we know it will not just end there. Indeed. During Facebook’s mobile press conference, Deals was announced, a needed feature that integrates perfectly with Places.

Deals is a feature that allows businesses to create deals on Facebook through a claimed Facebook Place. It’s similar to Foursquare’s Special but in a more organized fashion.

There are four types of deals that a business can offer – Individual, Loyalty, Friend, Charity:

facebook deals 1

facebook deals2

And when someone checked-in and claimed a deal, the status update looks like this on Facebook:

facebook deals update

Instead of offering badges to users, Facebook is quick to pull in businesses into its ‘mobile check-in’ plan. When businesses offer deals, check-ins become more valuable and meaningful. With benefits, it motivates users to use the feature more frequently. Businesses get more customers, users more benefits and Facebook more interactivity. It’s a beautiful picture.

We’re strong believers that businesses are the ones bringing in the real value for check-in users, not badges. Foursquare did make several business partnerships but I guess Facebook huge user base and popularity are too tough to match, even if we consider it as a late entrant in this domain. One thing for sure, Foursquare has to act fast before Facebook gobbles up the entire check-in market.

Perhaps Facebook has been watching this domain closely, learning from the mistakes made by its competitors and only enter when they’re sure about the market and plan. It’s the art of war at its best.

Download the Deals Guide for Businesses

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Tags: Facebook, foursquare, location-based, mobile

About Willis Wee

Founder of Tech in Asia who is also an entrepreneur since 2005. Contact him at willis[at]techinasia[dot]com

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Paul J says:

After a small amount of ethical soul-searching I have now abandoned 4Square and embraced Facebook Places – most of my colleagues have done the same despite a nagging sense of guilt about abandoning the little guy in the face of the 100 pound gorilla. However the rallying cry remains: give me convenience or give me death; who's going to check in twice?

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