Deals On Facebook: now being tested

Facebook’s rival to Groupon, Deals on Facebook, is launching with the social network revealing details of the first test markets.

At the moment you’ll have to be in Atlanta, Austin, Dallas, San Diego and, of course, San Francisco, to benefit from the test but in a blog announcing Deals on Facebook, the company said it would be expanded to other cities in the future.

What does it do? Facebook is promoting the idea of Deals offering exciting experiences that might not be available elsewhere, rather than simply going for the Groupon bulk buying angle (although this part of the sell).

Facebook has worked with companies already known for deals, like restaurant booking firm OpenTable and ticketing company Viagogo (but not Groupon), as well as negotiating with local partners to come up with offers. One of the first available is in Austin, with the All Access Experience: instead of just going to a gig, you’ll be buying a backstage pass, access to a soundcheck and a dinner – as well as the gig.

Facebook is also highlighting the fact that it is offering deals you’ll want to take up with your friends – its platform is a rather more natural way of persuading friends to take up an offer than trying to interest people who don’t know or care about Groupon vouchers.

Will it prove to be a Groupon killer, or just expand the market for online bulk buying? Probably not, but there is speculation it might put a dampener on any Groupon IPO plans, reported to be in the pipeline for next year.