The state of location based services: Gowalla vs Foursquare

There has been a lot of buzz recently surrounding location based services (lbs). The more people carry a smart phone, the more are starting to try out applications that make use of the phones integrated GPS, that present you locations around you, and that let you check in to those locations to show your contacts where you are hanging out.

Although not the first location based services around, Gowalla and Foursquare are the two start-ups that caught most of the social web crowds attention in recent month. Their user numbers are still low compared to huge social networking giants like Facebook or Twitter – Foursquare is said to have 600.000+ users, Gowalla has even less – but the huge media attention they are getting and the loyalty of existing users can be a sign for a bright future for these and other location based services.

The functionality of Gowalla and Fousquare is very similar. You use their mobile apps or sites on iPhone, Android or BlackBerry phones to check in at locations near you. The more often you do that, the higher you are ranked in the leader board, and the more badges you get giving you higher status. You can also see which other users recently did check in at a specific location, and at Foursquare, the one with most check-ins becomes “mayor” of that location.

The more actual friends you add as Gowalla and Foursquare contacts, the more fun it is to use the services, since you can also get notified through push messages when your friends are checking in somewhere. Then, these location based services show their real power by making it easier to meet up spontaneously with a buddy who might sit in a bar just 100 meters from where you are.

In the US where Gowalla and Foursquare have their origin, the companies already have started to partner up with retailers, bars and media companies to offer people with a lot of check-ins discounts, freebies or other incentives.  Obviously these location based services open up for a range of new marketing possibilities for vendors, helping them to get new customers and to reward the existing customers loyalty.

In Europe, Swedish grocery chain ICA was one of the first retailers to use Gowalla for promotion purposes, when recently encouraging people to check in at their new store in central Stockholm and promising an iPad for the person with most check-ins.

Overall, the differences between Gowalla and Foursquare are minor ones and mainly regarding the user interface. Except for one major aspect: Gowalla only lets you check in at locations where you actually are, whereas Foursquare doesn’t have this limitation – and thus can be easier gamed. Foursquare says it is working on that.

The similarity of the services has led to a situation where quite many people are using both apps for now, making it necessary to check in twice at each location, one time with Gowalla, and one time with Foursquare. Fortunately, check.in, a new mobile service developed by Brightkite, another location based social network, has come up with a solution for this problem by allowing users to check in at Gowalla, Foursquare and Brightkite simultaneously.

It’s not clear yet which of the two apps eventually will win the location race, or if it will be Brightkite, LooptRummble, or one of the many other competitors in this space. However, location is undoubtedly already one of the biggest web trends this year, and it’s going to become much bigger when the majority of people will swap their basic or feature phones for multifunctional smart phones.

Next time you see people pulling out their phones after arriving at your favourite bar, they could be checking in.

5 thoughts on “The state of location based services: Gowalla vs Foursquare

  1. anmara April 13, 2010 / 10:19

    Not to forget about the new German player Friendticker who has a commercial concept behind all this from the beginning, and given the fact that Paris is on the initial list of locations might not only be limited to Germany in the future.

    See my post on this subject (in German) here http://struntprat.posterous.com/gowalla-foursquare-und-friendticker or the Techcrunch article http://eu.techcrunch.com/2010/04/12/friendticker-recycles-foursquares-model-for-germany-but-with-a-decent-crm-backend/ .

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