Facebook launches its “Deal” in 5 cities

On Tuesday, April 26,2011 Facebook launched a new service to compete with the two giants Groupon and LivingSocial. Deals appointed Group , this service allows users to have huge discounts on products of all types and will have before it, was declared interest by many users .

Atlanta (Georgia, south-east), Austin and Dallas, Texas (south) and San Diego and San Francisco, California (west), the Mecca of geek culture of the United States, were chosen to test the formula that Facebook plans to expand soon into other markets.

The principle is given a promotion when several users, in this case “friends” within the Facebook network, upon request.

Groupon as rival Social Living, which is supported by Amazon, offers daily or several coupons for services or products at very attractive rates, which are activated only if a sufficient number of Internet users have subscribed.

Groupon, launched in November 2008, is one of the most dazzling successes of the Internet economy now claiming 60 million subscribers in 45 countries. Society of Chicago (North U.S.) refused to fall a bid to six billion dollars from Google.

Google is testing a similar service, Google Offers in Portland, Oregon (northwest).

Facebook for its part intends to focus its “cheap” activities that are several, such as evenings dinner concert. “We worked with partners and local businesses to help provide the best social activities,” said an official of Facebook, Emily White, on the blog site.

If a Facebook member buys one of these special offers, his friends will be notified.

This new system could help the young company to achieve its revenue beyond advertising, which according to the firm eMarketer has provided 93% of its turnover in 2010, a share that would erode to 90% this year (although in value, it should more than double to 4.05 billion dollars).

Eleven other companies in the network economy expected to attend the new Facebook service, including Gilt City, OpenTable, specializing in restaurant reservations.


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