Facebook is getting ready to compete with Groupon by working with local businesses to highlight deals in specific areas and allow users to share them with their friends. The program will also let users see discount offers from partner services, including ReachLocal, Gilt City, Tippr, HomeRun.com, PopSugar City, KGB Deals, Plum District, and Zozi.
The social networking giant will be testing out the new service in San Francisco, San Diego, Dallas, Atlanta, and Austin. It will then expand from there, according to Bloomberg.
Facebook has confirmed the news. "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," a Facebook spokesperson said in a statement.
The company already offers Facebook Deals through Facebook Places, its check-in service. Its new daily deal service will work with Deals, though it will be very hard for Facebook to steal first place from market leader Groupon. Still, whenever the social network enters a new market, it has one huge advantage: 600 million users and counting.
Daily-deal services supposedly account for a third of all the ads on Facebook. Clearly the social network wants to take down the competition, but it wants to make sure its generating that extra revenue before it does.