Deal Or No Deal? Facebook Shuts Down Daily Deals, But Keeps Check-In Deals?

Another social media service bites the dust. Facebook has today announced that it is shutting down Facebook Deals, a daily deals service that competes with the likes of Groupon and LivingSocial.

“After testing Deals for four months, we’ve decided to end our Deals product in the coming weeks,” the company wrote in a statement to Reuters.

Update: While the daily deals service is no longer, TechCrunch is reporting that the Check-In Deals, the offers that appear when a person checks in to a place, will remain intact.

The news comes in the same week that Facebook has scrapped how it offers check-in services, Gowalla has announced it will kill off some features, and Google has given some of its social products the chop.

Facebook did not give an explanation for why it has decided to end the service, but it comes just days after the company pulled away from its standalone check-in service, Facebook Places, which it is now rolling into its main status timeline to enable both PC and mobile users to add a location to an update.

Facebook Deals was one of the social network’s forays into looking at how far it could take different strands of its business and mash them up into a new revenue driver. In this case, Facebook was letting users pay for the deals with Facebook Credits; and users could share deals with their friends. Also it gave Facebook another entry point to businesses to advertise, by way of the Deals.

Daily deal companies have attracted a lot of hype, but it’s not clear how well the Deals service was taken up by merchants and other businesses. Coincidentally, just earlier today, mocoNews spoke to a developer that noted that many of its clients preferred to manage their deals directly rather than via Facebook, even when they were using Facebook’s check-in APIs in their apps.

Facebook also noted in the statement that it will continue to look at how it can develop services to work with local businesses — but chalk daily deals up in the “no” column for now.