Facebook is reportedly readying a location-based service that will enable users to check-in to places and venues. Will this service aim to crush competitors like Foursquare and Gowalla? Well, it’s complicated.
Multiple services told CNET that the Facebook check-in service would launch in the coming weeks and it will enable users to broadcast their location when posting status updates. It’s still unclear if this will be its own Facebook service or if the world’s largest social network will implement this as an API layer for developers. Foursquare, for example, could build its own Facebook app or just use the social network’s APIs for a better experience.
This had been rumored for a while, as we earlier reported that the Facebook check-in service would debut with a large partnership with McDonald’s. Since that time, the world’s largest social network reportedly tried to buy Foursquare but winded up acquiring Hot Potato for a fraction of the price. Hot Potato started as a check-in service but migrated towards helping its users coordinate events.
The location-based check-in service is only natural for Facebook because most expect this to be a big business down the line. The social network has to be extremely cautious about how it approaches check-in services because it is already facing a ton of scrutiny over its privacy policies.
I’d lean toward a model where third-parties can build on top of its location services because the social network has said it wants to become a platform for mobile. It believes that adding a layer of social intelligence on top of these LBS apps can add a ton of value.
For example, having a discount texted to your phone when you’re geographically near a movie could be cool but it could also be considered spam if it’s not targeted well. If you are only sent a discount on movies that your Facebook friends like or have attended, that adds a tremendous amount of value.
[Via CNET (cached version, original seems to be down)]