Facebook is now competing with hot-performing Groupon.
Following the path blazed by deals site Groupon, Facebook will launch a deals service on Tuesday in five cities in the US.
Analysts will be closely watching as Facebook tries to leverage its all-important social graph with its deals service.
According to reports, the five cities where Facebook will launch its local discounts service will be Austin, Texas, Atlanta, Dallas, San Diego, and San Francisco.
Facebook’s director of local Emily White said that the company is “We’re building a product that is social from the ground up,” a report from The Associated Press said.
According to White, the deals to be featured on the upcoming Facebook service will also be more social than deals offered on other discount sites like Groupon.
“All of these deals are things you want to do with friends, so no teeth whitening, but yes to river rafting,” White said.