Foursquare Updates Create Competitive Advantage

Perhaps I’m a pessimist, but when I read headlines stating that location-based service (LBS) provider Foursquare released updates including those enabling photo uploads and comments, my reaction was as follows: *yawn*. Why? Because rival LBS provider Gowalla already implemented many of these features last March!

The Foursquare brand has become synonymous with the LBS movement, a movement that is gaining momentum as smart phones continue to dominate the mobile market. Though Gowalla does not have the same sizable user base as Foursquare, they have proven to be an innovative leader in the LBS space.

So, Foursquare essentially released an update to rival the capabilities of its less-popular competitor?

There is more to the story than that. This release is actually a major move by Foursquare to create competitive advantage: users of Foodspotting, Instagram and other location-based applications will be able to share their photos, comments and checkins with Foursquare. Foursquare has made it more compelling to use their applications wherever users choose to use it (not necessarily in their app).
I spoke with my good friend and LBS enthusiast Mike Schneider about the new release–it would be an understatement to say he was excited about it.

Mike had the following to say: “Foursquare has been doing just fine without a photo model and that there is no reason to apologize for being late to the game.” He thinks Foursquare’s move to both take photos on their platform as well as “suck in” photos from others like Instagram and Foodspotting while checking you in is innovative and demonstrates their desire to rule the checkin world.

Previously, Foursquare did not allow people to comment when checking in. That capability was available only through other platforms like Twitter and Facebook–this shift is very exciting. Mike said “While no LBS is particularly good at summarizing comments and mentions related to content, Foursquare is allowing you to have them pushed to your phone as they happen”.”

Mike continued: “The updated features make it easier and more compelling to use Foursquare than ever and are in line with their desire to have brands use the API to take advantage of their platform without them necessarily needing to be involved.”

Things aren’t always what they seem on the surface–these updates are a great move for Foursquare as they continue to expand the LBS space. Scaling a business like Foursquare while under public scrutiny will not be easy, but this is great competitive positioning for the LBS giant.

What do you think of Foursquare’s move?