Facebook Testing Feature That Lets Neighbours Connect as Rival Nextdoor Eyes IPO

Facebook confirmed the company is currently testing the feature in Calgary, Canada.

By Kurt Wagner, Bloomberg | Updated: 21 October 2020 16:15 IST

Facebook Testing Feature That Lets Neighbours Connect as Rival Nextdoor Eyes IPO

When Facebook enters a new market, it can have an immediate impact on competitors already in the space

Highlights

The Neighborhoods feature is notable given the popularity of Nextdoor
Nextdoor is a neighbourhood-based social network founded in 2008
Facebook has a history of mimicking rival products

Facebook is building a feature for users of its social network to connect with their neighbours, a push toward more intimate interactions that treads on the idea behind rival Nextdoor, which is considering a public offering.
Screenshots of Facebook's new feature, which is currently being tested, were shared on Twitter Tuesday by Matt Navarra, a social media consultant. The images show a product called Neighborhoods, where users can enter their address and complete a unique “neighbourhood profile.” A Facebook spokeswoman confirmed the company is testing the feature in one market: Calgary. The screen grabs show the software using the Canadian English spelling of its name.

Facebook is taking on NextDoor with a NEW ‘Neighborhoods' feature! ????????

h/t Leon Griggs / https://t.co/oHkIdU6nbC pic.twitter.com/OHYMW1ig9I
— Matt Navarra (@MattNavarra) October 20, 2020

Other images show Facebook reminding users that its “community standards” still apply inside the Neighborhoods feature and the company encourages people to “Keep It Clean” and “Be Inclusive.”

“More than ever, people are using Facebook to participate in their local communities,” the spokeswoman said in a statement. “To help make it easier to do this, we are rolling out a limited test of Neighborhoods, a dedicated space within Facebook for people to connect with their neighbours.”

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Facebook had been pushing people toward more intimate interactions within the app in recent years, including private groups and messaging, as a way to increase usage of its services. It has also started to encourage users to create separate profiles within their larger Facebook profile for specific cases, like dating and college connections.

An early version of the product was first spotted and shared on Twitter by Jane Manchun Wong back in May.

Facebook is working on a feature called Neighborhoods pic.twitter.com/rhAac4zPN7
— Jane Manchun Wong (@wongmjane) May 16, 2020

The Neighborhoods feature is notable given the popularity of Nextdoor, a neighbourhood-based social network founded in 2008 that has raised about $470 million (roughly Rs. 3,464 crores) in funding. Nextdoor is considering different options for going public, including a direct listing, Bloomberg News reported last week. The San Francisco-based company says it serves more than 2,68,000 neighbourhoods globally, including about a quarter of US neighbourhoods, on the service. Each neighbourhood works as its own mini-social network, and people use it to do everything from selling used goods to posting about crime or neighborhood events.

When Facebook enters a new market, it can have an immediate impact on competitors already in the space. When the Menlo Park, California-based company launched its dating product in the US, for example, Match stock fell as much as 7 percent.

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Facebook also has a history of mimicking rival products, and has been accused of copying many over the years, including the popular Stories feature created by Snapchat. Facebook is currently under investigation from a number of government regulators, including the US Federal Trade Commission and the Justice Department, for alleged anti-competitive behavior. The screenshots posted to suggest Facebook's Neighborhoods product will work in a similar way to Nextdoor.

You can select your local neighbourhood and permit Facebook to use your location to display posts, groups, marketplace items and more from your others in your neighbourhood.
© 2020 Bloomberg LP

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