So we Tweeted about it like crazy yesterday as soon as we heard about Gowalla’s new version 3 release. Moreover, as soon as we heard about the release, we made sure we updated our Gowalla apps on our iPhones. We thought about blogging then that the release was available, but instead we decided to spend the day using our newly updated Gowalla app, so that we could better get a handle on all that could happen.
Before we continue and to bring everyone up to speed, yesterday Gowalla updated its iPhone application to a sleek new interface, of course, but most importantly, a one time check in process for all of your location based services (foursquare, and Facebook Places). Up until this time, Gowalla and foursquare have fought for the same user base and up until now, foursquare was the Goliath of the two. With Gowalla’s recent change however, they’ve leapt ahead of foursquare. The new Gowalla V.3 will encourage, and it has already started, users to check in with only one service (Gowalla) to syndicate their location to friends, instead of updating multiple properties – and this is good news for Gowalla.
What’s Next in the Location Based Services Battle
- Gowalla’s single point of check-in efficiencies, will drive more users to the application, limiting the amount of organic check-ins on foursquare
- foursquare’s revenue model, which is dependent on an interactive user base, will be threatened
- Gowalla will quickly move to monetize their new platform and user adoption rates
- foursquare will fight back with an incorporated group buying strategy, to continue to build leverage with its business clients and users
- One of these two location based services will be acquired in the next six month – up until now we were confident that it was going to be foursquare
Nonetheless, another reason we held off before posting about the Gowalla changes is because we were hoping we would see a response from foursquare on Gowalla’s v. 3 release, especially since the integration was not done through partnership. The integration was done through using API services.
In the end, this was a brilliant move by Gowalla. It pushed them ‘up a bunch of notches’ in the location based services game, but a lot tells us neither they of foursquare are done. 2011 will be an interesting year as we watch social media extenders (group buying, location based services) transform for the better through competition.
