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Facebook Stops its Facebook deals service in the US

We haven't seen much of Facebook Deals, down here in New Zealand. Around 4 months ago Facebook launched its own version of daily deals. These would be shown on Facebook, based on the users location.

The service rolled out to a handful of major US cities, during their testing phase. Facebook didn't actually source deals, rather it syndicated deals from other services. But reports are that Facebook has stopped development, and canned any plans to run a daily deals service.

The World Number 1 deals site Groupon will be breathing a sigh of relief. Facebook looked to be a strong contender in the daily deals market, solely because of the size of its network. Reasons for Facebook giving up on the plans include slow uptake, and use of the service.

Users quickly realised that Facebook wasn't actually offering the deals. Facebook was simply displaying deals from other deals sites on its pages. It seems users were expecting something a little different. Facebook is a technology company, not a sales organisation as daily deals sites need to be.

Posted: Tue 06 Sep 2011


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