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For in­stance, if you get three friends to buy a Liv­ing­So­cial vouch­er, yours is free. Many deals sites have a so­cial com­po­nent. It hopes to ex­ploit its ex­ist­ing net­works of friends and fam­i­ly when it be­gins test­ing of­fers in San Diego, San Fran­cis­co, At­lanta, Dal­las and Austin, Texas.

By al­low­ing small busi­ness­es to lever­age the In­ter­net while help­ing con­sumers score great deals, these group-coupon­ing ser­vices have be­come some of the fastest-grow­ing busi­ness­es in the world. Face­book launched a deals pro­gramme yes­ter­day in five US cities, fol­low­ing on the pop­u­lar­i­ty of Groupon and oth­er ser­vices that of­fer deep dis­counts-for ex­am­ple: US$50 worth of food at a lo­cal eatery for US$25. Now we’re actually getting them done.What hap­pens when you cross the world's largest so­cial net­work with one of the hottest busi­ness mod­els in e-com­merce? Face­book wants to find out. ‘The most frustrating experience for me was having a lot of things we wanted to build with Dodgeball and not being able to do them. No idea if we’ll be sold or independent in five years,’ he said. ‘I have a solid idea of what the product will look like after two years. Where will Foursquare be in five years? Will there be an IPO? An acquisition? Crowley’s not too sure. Crowley said Groupon and companies like it are more partners, than competitors, who could benefit from Foursquare’s stats on how many times someone has been to a given location or the number of friends that person has checked in with. He’s also not worried about Groupon, which just turned down a $6-billion bid from Google. ‘What’s interesting is what happens after you check in.’

Crowley envisions a business that boosts local merchants.Ĭrowley said he’s not worried about the launch of Facebook Places, a similar location-based service, or Facebook Deals, which offers coupons or specials to users at nearby businesses. In the process, they can earn recognition and incentives, such as badges, points or the title of mayor of a location if they check in frequently enough. ‘The point is not to become profitable now, but to grow,’ he said.įoursquare is a service that lets users tell friends where they are by ‘checking into’ a location on their mobile phones.