Facebook is testing hyperlocal groups called 'Neighborhoods' that could end up rivaling Nextdoor

• Facebook is testing a new feature called "Neighborhoods" that allows users to connect with local people, in a similar way to social media site Nextdoor.
• Users select their neighborhood to see posts, groups, and marketplace items from people and businesses in their local area.
• Users need to verify their neighborhood by turning on their location — and Facebook says it uses this data to provide "more relevant" ads. This may include hyperlocal adverts.
• The feature is being trialed in Calgary, Canada.
• Nextdoor is considering going public, Bloomberg reported last week, at an estimated valuation of between $4 billion and $5 billion.

Facebook is testing a feature that connects users with their neighbors in community networks — similar to Nextdoor, the hyperlocal social network valued in the billions.

"Neighborhood," which is being trialed in Calgary, Canada, will display posts, groups, and marketplace items from people and businesses in your local area, based on your location.

It may also show hyperlocal adverts.

Facebook users can also create a separate Neighborhood profile on the site. This allows them to share select information with local residents, such as their favorite places, without becoming Facebook "friends."

Users can then "connect with like-minded neighbors," screenshots of the app posted by social media consultant Matt Navarra show.

Facebook's Community Standards still apply, but Neighborhoods has its own designated privacy settings, and users can control who sees their information.

Facebook advises users to keep the content on Neighborhoods local, and tells them to save comments not directly related to their local area for other parts on Facebook.

It also tells users not to spam the feature "with content that doesn't add value to most neighbors."

To use the feature, users need to verify their neighborhood by turning their location on. Facebook may use the new feature to give users hyperlocal adverts, Navarra said.

"Using Location Services also helps Facebook provide more relevant experiences outside of Neighborhoods, including ads," Facebook said in a screenshot of the feature.

People are increasingly using Facebook for community-based chatter, a Facebook spokesperson told Bloomberg.

"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 neighbors," they added.

Neighborhoods is similar to hyperlocal social network Nextdoor, which said in May that its usage had spiked by up to 80% during the pandemic.

The app allows neighbors to find recommendations and local businesses, buy and sell goods, hire babysitters, discuss events, and generally talk with local people. Authorities including police and fire services also use it to share live updates.

Nextdoor operates in more than 268,000 neighborhoods in 11 countries, it says, including in around one in four US neighborhoods.

Nextdoor is considering going public, Bloomberg reported last week, and is looking at a valuation of between $4 billion and $5 billion. This is around double its $2.2 billion valuation from its last funding round in September 2019.