Foursquare launches rating system, competes with Yelp

An example of Foursquare's new rating system within the Explore button of its iOS app.

(Credit: Foursquare)

Foursquare is edging even deeper into Yelp territory. Today the check-in social network announced that it is launching a 10-point rating system for local businesses with its iOS app update.

Sound familiar? That's because it's basically Yelp's business model. However, Foursquare said that what it's introducing is "a lot different from the other types of ratings you see today."

"Instead of other sites where every place gets 3.5 stars, we come up with our scores using the same Foursquare magic that powers Explore," the company wrote in a blog post today. "We look at signals like tips, likes, dislikes, popularity, loyalty, local expertise, and nearly 3 billion check-ins from over 25 million people worldwide."

The way the ratings system works is iOS users can go into the Explore section of Foursquare's app and see or add a score from 1 to 10 next to the name of a restaurant, bar, boutique, or whatever else is listed. Besides just checking out scores on the app, users ca... [Read more]