Tuesday, 30 August 2011

Deal or No Deal: Facebook, Yelp Cut Daily Deals Services

Selective consumers searching to reduce your cost because of the web, beware: This specific purchase might be ending earlier than you'd expect.

Within the last week, not just has Facebook stopped its Facebook Deals service, but Yelp can also be rumored to become thinking about "scaling back" its Yelp Deals service, with 50% from the labor force being let go along the way. Is the start of the finish from the Daily Deal

(MORE: Groupon Posts $103 Million Reduction in Last 3 Several weeks)

Facebook gave pointless for ending its Deals service, although within the announcement from the closure, the 4-month-old service was referred to as "an evaluationInch (most probably not really a very effective one). Yelp, meanwhile, has referred to the decrease in its service like a refocusing of strategy that enables it to pay attention to "good" deals rather than having to offer ones of "naturally decreasing quality."

Likely, both companies are responding towards the flooding from the market of Daily Deals choices at any given time when taking part companies are learning that offering deals isn't any guarantee of elevated sales or profits and visitors to such deal sites is lower 27% overall. With leader in the industry Groupon confirming massive quarterly deficits along with a 50% drop in traffic (though�things are apparently good there), it is possible these two distributions in the Daily Deal space are simply the very first of numerous don't be surprised within the days and several weeks in the future.

MORE: Glenn Beck's New Discount Site Has 'Value and Values'

Graeme McMillan is really a reporter at TIME. Find him on Twitter at @Graemem or on Facebook at Facebook/Graeme.McMillan. You may also continue the discussion on TIME's Facebook page as well as on Twitter at @TIME.



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