Facebook Ends Facebook Deals

Just four months after launching a daily deals network to compete with Groupon and Living Social, the world’s largest netwrork, Facebook decides to end the service.

“After testing Deals for four months, we’ve decided to end our Deals product in the coming weeks,” said Annie Ta, a spokeswoman for Palo Alto, California-based Facebook. “We’ve learned a lot from our test and we’ll continue to evaluate how to best serve local businesses.”

Facebook started making offers in five cities and had a small sales team arranging deals with local merchants. But the company also ran offers that were set up by 11 other daily deal companies, including ReachLocal, Gilt City and Zozi.

The daily-deal industry, led by Chicago-based Groupon, had a 7 percent decline in revenue in July from the previous month in top North American markets, according to Yipit, a daily-deal market researcher.

 



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