Uh-oh … is Facebook going to overshadow Foursquare?

Facebook is attempting to disrupt the market again! This time, they are moving in on a profitable sector that was found in Foursquare. In an article in today’s Techland.com, the CEO of Facebook has announced plans to launch a location-based service where customers can earn rewards for publicly checking in (free publicity) to places, similar to Foursquare.

Facebook announced a new function called “Facebook Deals” in which companies have already jumped on board. When someone checks into a participating vendor via Facebook, they will receive some sort of incentive.

The worry for Foursquare is that businesses might be more likely to utilize Facebook for its half a billion users.

Here’s some info on Facebook’s blog about the new function: And a new video to demonstrate it!

What do you guys think?

** edited to reflect half a billion users, not million

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3 Responses to Uh-oh … is Facebook going to overshadow Foursquare?

  1. Delece says:

    I’m wondering why Facebook didn’t buy Foursquare rather than create its own version of a location-based service.

    And I’m not convinced this new Facebook feature will be a hit. One reason Foursquare became so popular is because it fulfilled multiple jobs to be done that were not covered by other social networking sites. It allows people to keep track of where their friends are and how often they visit certain places, inspires playful competition (as people compete to be, for example, the “mayor” of a restaurant) and lets newcomers to a region learn what are popular spots. Facebook designing something similar is like trying to reinvent the wheel. Why redo what already exists?

    Although, this would be the first location-based service embedded in such a multi-functional social networking site. Now, some iPhone users can go on Facebook to change their status, add photos to their Facebook page and check in at their favorite movie theater for points.

    I see why Facebook would attempt to do something like this, and I see the potential for it go over well. But since it’s not a new thing, I’m not convinced it will work. The job it would do is so minimal that I’m not sure it will pull Facebook users away from Foursquare.

  2. doneliya says:

    I think that this new feature is a great idea with a lot of potential for generating profit and advertizing businesses. Finding deals on Facebook, and especially via your phone, will provide customer convenience through easy access and “location-based service.” It seems that everyone will benefit from the new feature: Facebook, vendors, and customers.

    Through “Facebook Deals” customers will receive incentives to check into a vendor via Facebook; the vendor will have a chance to advertize its business, gain popularity, and increase profit; and Facebook will receive some kind of benefit/profit.

    I think that this new feature via Facebook could overshadow Foursquare because of the large Facebook audience. Everyone wants “a piece of Facebook” and I’m likely to believe that vendors will see more potential to shift towards “Facebook Deals.”

    I see one potential limitation – the fact that the feature is available for iPhone users only. To monetize this feature, Facebook should look into ways to reach larger pool of potential customers. Therefore, to reach a wide audience and maximize profit, Facebook should promote “Facebook Deals” and distribute the content across multiple platforms, such as Android, BlackBerry, Palm and others.

    Also, the idea to make this feature available in countries outside the United States sounds good for increasing profit. However, I’m not sure if it will be successful, especially in less economically developed countries, where the internet cost is high, or where internet is not available via phones.

  3. Pingback: “Check-in” social media … hot, hot, hot! | Georgetown Entrepreneurial Journalism

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