Facebook Nearby, the function in Facebook's mobile app that allows locations to be tagged, has been updated to include business reviews and friends' hangouts.

Mustering up for mobile

Facebook announced the update in a blog post by Product Marketing Manager Sue Young.

“Nearby helps people discover places near them based on their friends’ recommendations.

“People can explore by category (ex: restaurants or hotels); connect to businesses directly from their phone (by liking, checking in, calling, or getting directions); rate the places they visit via a five-star system; and share their recommendations with friends,” wrote Young.

Previously, Facebook Nearby simply listed businesses and landmarks users could check into.

From today, this list will now be ranked based on the likes, ratings and check-ins from the user's Facebook friends.

Users can also now more easily share their own reviews and recommendations with their Facebook friends.

Good for business

With 250 million users tagging locations each month using Facebook Nearby, the update may help walk-in traffic for businesses, provided they have a location-enabled Facebook Page.

Moving against Yelp and Foursquare

The update pits Facebook directly against mobile review platforms Yelp and Foursquare.

While Facebook Nearby is currently ad-free, it is conceivable that businesses can pay for higher placement in rankings.

From a consumer point of view, it will be interesting to see how users respond to recommendations from friends, and Facebook.

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