Aug 26, 2011 at 7:38pm ET by Matt McGee
Facebook is backing off from the local/small business space — or at least parts of it. A few days after dropping its check-in service for Facebook Places, the company is now getting out of the deals business.
“After testing Deals for four months, we’ve decided to end our Deals product in the coming weeks,” the company said in a statement emailed to Reuters. “We think there is a lot of power in a social approach to driving people into local businesses,” Facebook added in the statement. “We’ve learned a lot from our test and we’ll continue to evaluate how to best serve local businesses.”
To be clear, this is the Facebook “Social Deals” product — its Groupon competitor — that was launched back in April. (As opposed to the check-in deals product that is apparently staying alive in some form despite the announcement earlier this week.)
Social deals required participating businesses to have a Facebook page and allowed the merchants to offer deals that didn’t specifically offer a percentage-based discount.
We’ve reached out to Facebook for more information and will update this post if we learn more.
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