After much hype over the big Facebook announcement, the social media site unveiled its new Graph Search feature today, where users can search for pretty much anything friend-related.
While some were hoping that Mark Zuckerberg would reveal a Facebook phone or confess that he stole the idea of Facebook from the Winklevoss twins, the Graph Search news is spooking at least one rival social media company. Social review site Yelp saw its stock sink as much as 8.5 percent Tuesday after Facebook unveiled Graph Search.
Facebook’s new feature should worry Yelp when it comes to listing and recommending places, as detailed reviews of local places by its users are its bread and butter. Since Facebook has potential strength in numbers, Yelp may be in trouble when Facebook users can find things like “Thai restaurants liked by my college friends” or “Coffee shops featuring organic Java beans” without leaving the social media site. The Graph Search feature is one way Facebook is monetizing its data and keeping its users interested a few minutes longer, and Yelp will need to find ways to compete with that.