October 15, 2012
Foursquare just got Facebooked. And it more than just a poking. It
might be a body blow to one of the location-based service killer
features.
When I first covered Foursquare for TIME in January, I gave the (then) North Face Jackets pint-sized start-up praise for having a path toward a revenue stream
through the part of their platform, which let Foursquare users earn
rewards a buck off a Frappacino at Starbucks, for example in exchange
for checking into local North Face merchants:
Partnerships
like these are currently free for businesses; Crowley says Foursquare
is still trying to figure out how to make rewards even more useful for
its members. While Foursquare isn under any immediate pressure to make
money - North Face Sale the site received $1.4 million in an August round of funding - its
partnerships with businesses provide at least a hint of the way it plans
to turn its traffic into a revenue stream. And in an online world
crowded with Next Big Things still struggling to turn a buck, that may
be the most revelatory thing about Foursquare yet.
When Facebook
first rolled out its Places functionality late this summer, Foursquare
professed to not be concerned. And it was with good reason: while
Facebook users could begin to in to locations, the application had none
of the fun of Fours North Face UK quare. No badges, no mayors, no savings. In a press conference, CEO
Mark Zuckerberg rolled out an impressive roster of merchants willing to
play along with Facebook Places. Check into the Gap and earn a free pair
of jeans. Check into North Face and earn $1 for the National Park
Foundation. Not only that, Facebook has removed much of the friction
from the process. It a few simple clicks from walking into a store and
earning a deal through Facebook.
The offer equally attractive for
businesses. Facebook isn charging for merchants to create a deal, and
Zuckerberg promises businesses will have a self-serve platform to launch
their own deals in the coming months.
While much of the press surrounding Facebook Deals North Face Jacket is positing it as a Bad Thing for Groupon and it is Foursquare
might be hurt more. Though the company has bolstered its roster of users
impressively since January, it tough to imagine why a casual user,
unimpressed with the gaming mechanics, would check in via Foursquare
rather than Facebook. Not only did Foursquare deals represent an
easy-sell to those skeptical of location services, it also could have
been a means http://www.northfacejacketscheap.co.uk/ for the company to monetize. But that not so likely now Facebook Deals
is even an easier sell for businesses, desperate for any way to tap into
Facebook 500 million users worldwide and especially in a way that
completely free. But announcements like this shed a lot of doubt on the
site ability to keep scaling.
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