Wednesday, March 16, 2011

Facebook to Test Groupon-style Service

Facebook plans to test a Groupon-style service to provide local discounts to its more than 500 million members.

By working with local businesses to highlight deals in specific areas and allow users to share them with their friends. The service will get started in Dallas, Austin, Atlanta, San Francisco, and San Diego. It will also expand on the social-networking giant’s Deals program, which offers specials to users when they use Facebook Places to check in at local business.

The new service will also allow Facebook users to see discount offers from partner services, including ReachLocal, Gilt City, Tippr,, PopSugar City, KGB Deals, Plum District, and Zozi.

“Local businesses will be able to sign up to use this feature soon, and people will be able to find Deals in the coming weeks,” Facebook said in a statement.

According to research firm BIA/Kelsey, United States customers spending on daily deal services will generate $3.93 billion by 2015 2015, up from $873 million last year.

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