Cashing in
Facebook is set to trial a service that allows consumers to bag one-off discounts in a bid to boost its Deals proposition.
The social network wants to increase sales via Deals plus get more local businesses to use the service and has come up with the idea of letting users share discount deals with their friends, Bloomberg reported.
A total of 5 US cities will get the trial run, including: San Francisco, Atlanta, San Diego, Dallas and Austin.
Facebook reportedly said: "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."
It seems this is Facebook's latest move to grab a piece of the fast-growing online coupon market of which Groupon is arguably the leader. The industry in the US is reportedly tipped to grow to $3.93bn by 2015 from around $870m in 2010, according to consulting firm BIA/Kelsey.
Apparently Facebook's discount orders will be sold to businesses using its own staff, but also via service partners, including: PopSugar City, Zozi, ReachLocal, Gilt City, HomeRun.com, Tippr and Plum District.
Facebook is desperately trying to add to its social networking arsenal and attract companies looking to do business with its 500 million strong user base. Recent advertisers reportedly include JetBlue Airways and Starbucks.
The company recently revealed it has pulled in $1.5bn from investors led by Goldman Sachs, which valued the social network at a whopping $50bn. Bloomberg reported that a few sources said Facebook also notched up $2bn in sales in 2010.
