[davidamcclain]

Is there any chance that there's bit of a chicken/egg scenario going on here?

Maybe we won't see many coupons for LBS until they have a large enough slice of the retailer's demographic (or just a large enough % of the population) and few people will sign up to use these services if they don't have these coupons.

Facebook on the other hand is a different beast. A massively larger user base and greater brand recognition with companies. How many ads do you see on TV where the URL on the screen is to facebook.com/some-household-brand. Businesses are already savvy to the fact that a great proportion of their customer's traffic is on Facebook. Seems like a small jump to move your coupons from your Facebook page to your location/"Place" on Facebook. Gowalla and Foursquare don't have their foot in the door like Facebook does.

[acgourley]

While FB is on a great trajectory in this space, as of right now I would guess Yelp serves more page views to people looking for information about restaurants. They have some deals but its not extremely compelling.

Two possibilities: Yelp is missing a big opportunity or that opportunity is an illusion; every restaurant doesn't want to offer coupons freely online.

I realize you didn't specifically say restaurants, but if it isn't happening in that extremely competitive industry, why would it happen anywhere else?