I originally thought the same, but you should remember that they've developed this a wee bit differently than other models. It's based on friendships (Facebook after all) and Facebook credits. So I'm guessing that if suddenly all my friends were going to X on Y and I see that, I can say to myself, "hmm, I feel like catching up with some friends, all I need to do is go to X on Y too...".
Groupon, you show the link to a friend and they go, "Yay, cheap food!" or you can go, "hey friend! let's get more friends and go hang here!! cheap food!!" but I'm guessing Facebook will take out all of that "tedious" planning stuff, so it's very streamlined - i.e. if more than X friends are going to Y you'll be pestered via your Wall until you click "buy" or whatever it'll be.
I wonder how much the timing of Facebook Deals is being driven by the upcoming Groupon IPO. A competing Deal service that is free to businesses could upend the Groupon model, making them more open to an acquisition instead of an IPO.
Or maybe just put the brakes on Groupon before it has enough users to add "social features" and become a shopping-driving social network?
I question Facebooks place in this market. While rather interesting move and actually a forward thinking move, what happens when other small web companies spring out of nowhere like Groupon and the BEAST steps in called facebook and takes over. I think it Compares to MSoft in the early days.
Maybe with the huge mountain of Cash groupon is sitting on, they should push some money into creating a solid, yet open-slightly closed source of a social network to even try to dethrone something as big as facebook.
From one side, it is exactly what Facebook should be better at than any other company; targeting specific people by interest and location, and networking that via the social graph. If my wall post provided free advertising for a company when I purchase a deal, there is a higher chance for my friends to consider the deal.
On the other hand, Facebook has done a remarkable job not trying to become the Google of the internet. For instance they seem to have left Zynga alone to make games; where as Google has tried to buy (DoubleClick) or copy (Buzz) every product which came along in a niche that they hadn't reached into yet.
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[ 3.5 ms ] story [ 108 ms ] threadGroupon, you show the link to a friend and they go, "Yay, cheap food!" or you can go, "hey friend! let's get more friends and go hang here!! cheap food!!" but I'm guessing Facebook will take out all of that "tedious" planning stuff, so it's very streamlined - i.e. if more than X friends are going to Y you'll be pestered via your Wall until you click "buy" or whatever it'll be.
Seems like facebook is late to the party - they should have partnered with groupon or livingsocial imo. Time will tell.
Or maybe just put the brakes on Groupon before it has enough users to add "social features" and become a shopping-driving social network?
Maybe with the huge mountain of Cash groupon is sitting on, they should push some money into creating a solid, yet open-slightly closed source of a social network to even try to dethrone something as big as facebook.
On the other hand, Facebook has done a remarkable job not trying to become the Google of the internet. For instance they seem to have left Zynga alone to make games; where as Google has tried to buy (DoubleClick) or copy (Buzz) every product which came along in a niche that they hadn't reached into yet.