Yelp Enables “Check-ins”. Is #Foursquare Doomed?

Taking a page from Foursquare, Yelp has just rolled out an upgrade to their iPhone app that enables you to “check-in” when you frequent a local business. “Checkins” are a way to provide mobile users with on the spot deals, incentive points, accolades etc.

It’s no secret that I’m a big fan of Foursquare and make no bones about how I think their model could be the most disruptive thing to hit the local advertising market in a long while, but I have to say: Yelp + “check-ins” is a killer app.

I’ve used Foursquare for months checking in everywhere I go but, after a while, my checkin’s have definitely slowed. I think the reason is that the game/points dynamics of Foursquare is not really what motivates me to checkin over the long term. My checkins are fueled by a desire for two things: status (yes, I’m the “mayor” of my favorite places) and the ability to get deals.

The problem I’m seeing with Foursquare is that after becoming the mayor of my spots, there are no deals to be had. If I was getting access to new deals I’d still be checking in daily, but alas, the only deal to be had in Palo Alto for the last few months has been half price pitchers at the Blue Chalk Cafe (nice! but not my cup of tea).

Foursquare needs more deals if they want to attract and retain a broader user base. This is where Yelp has the advantage. Yelp has relationships with tens of thousands of businesses and I’ll bet that e-mails will soon go out encouraging them to post special deals for frequent visitors that checkin. I already use Yelp to figure out where to go, so a checkin once I’m there is a no brainer.

So is Foursquare doomed?

I don’t think so, but they desperately need to figure out a model whereby they can organically acquire relationships with businesses as quickly as possible. The key move for Foursquare is going to be in leveraging their very loyal (and growing) user base to generate the awareness among business owners for them. Someway or another Foursquare has got to find a way to either shame or fame their users into getting their favorite businesses to engage in the model and post deals.

If Foursquare can turn their user base into their “feet-on-the-street” sales force, their advertising model could be explosive. If not, they run the risk of “dying in the sand”, just as countless other local content and advertising ventures have, as they attempt to scale their direct relationships with local businesses.

I’m hoping they make the right moves in response the Yelp’s play for the space.