Facebook Inc (FB) Is Smarter Than You Think

Page 1 of 2

If you think that Facebook Inc (NASDAQ:FB) is big now, just wait.

Bloomberg is reporting that the social networking giant is developing an app that tracks the location of its users. Two unnamed sources “with knowledge of the matter” claim that the program will help Facebook Inc (NASDAQ:FB)’s more than 1 billion active users find friends that are nearby.

Yes, you’ve seen this before.

Facebook Inc (NASDAQ:FB)Apple Inc. (NASDAQ:AAPL) was so fond of its Find My Friends feature last year that it made it a star in an iPhone commercial last summer starring Martin Scorsese.

If Apple didn’t seem to gain a lot of traction with its friend-finding feature, why should Facebook Inc (NASDAQ:FB) fare any better?

Let’s just say that I don’t want to find my so-called friends
There are several reasons why a location-based application fails. The biggest stumbling block is failing to achieve critical mass. As big as Apple is when it comes to consumer tech, it never really did get enough people to turn on the “Find My Friends” feature.

Apple isn’t perfect, especially when it comes to social media. Ping failed as a social music add-on to iTunes because folks just don’t associate Apple with the art of social.

Facebook Inc (NASDAQ:FB) doesn’t have that problem, obviously.

Another big reason for the failure of location-based platforms is apathy.

Foursquare and even FFacebook Inc (NASDAQ:FB) check-ins have their fans, but to most consumers those “look where I am” apps are limited to hipster braggarts. If that’s all that we’re getting out of Facebook’s new app when it reportedly rolls out next month, color me unexcited.

The real promise here is if Facebook can marry location with commerce.

Following the bleeder
Groupon Inc
(NASDAQ:GRPN) is a broken company with a flawed model in many ways. However, one thing that it’s doing right is Groupon Now. The ability to find instant deals by location — something that forward-thinking merchants are also doing with Foursquare and Facebook check-ins to get the word out — is a game changer.

Yelp Inc (NYSE:YELP) is another company doing right by location. The app uses your location to search for well-reviewed places to eat, get a mani-pedi, or buy vintage clothing. Yelp is no stranger to commerce. It offers merchant deals. Foodies can also fire up OpenTable Inc (NASDAQ:OPEN) within Yelp to book reservations at popular restaurants. It’s big, and investors will get a snapshot of how big this business may be when Yelp and OpenTable report fresh quarterly financials on Thursday.

However, Facebook has the ability to outdo anyone in this space.

Remember Graph Search?

The market wasn’t terribly impressed with the new search platform that scours through friends — and friends of friends — to drum up relevant responses. However, put the location-based app that Facebook is working on and Graph Search beta together and you have something beautiful.

Rock on
Let’s say that you’re at a Matt & Kim concert — yes, you’re a hipster — and your Facebook app alerts you that a high school buddy and a cousin that you haven’t seen in a few months are there. Why not get together for a bite after the show? Graph Search can help you find that sushi place nearby that your colleague goes to every other week. You can hit up a sandwich shop that a friend of your cousin’s friend actually owns. How about that Korean BBQ place two blocks away offering Facebook guests 20% off?

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

The 10 Biggest Outlet Malls in USA

The 5 Most Popular Rap Songs of All Time

The 10 Countries that Eat the Most Meat

The10 Most Expensive Countries to Fly To

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!