Congratulations Foursquare on 10 million registered users globally. Now what?
The company has raised roughly $21 million in funding and has a $100 million (approx) valuation according to informed speculation. There are reportedly 400,000 SMBs now “on” the site and 10,000 developers who’ve used the Foursquare API.
I asked yesterday how many Foursquare users were “active,” which I defined as on the app/site at least once a week. I didn’t get that answer but received the following from the company’s PR team:
Foursquare is adding around 1 million new users each month. Additionally, foursquare has received over 650 million check-ins since launching. Each day, foursquare receives around 3 million check-ins.
Three million check-ins is not necessarily three million people. My “seat of the pants,” anecdotal guess is that fewer than half of registered users are active on a weekly basis. By the same token there’s a huge global market and — assuming the accuracy of the above statement — by this time next year we could see another “infographic” with 20 million users.
I believe that Foursquare is on a collision course with Yelp. It essentially occupies the same “space” and fulfills a similar need and use cases for both consumers and SMBs. However Yelp is much more mainstream and more widely used than Foursquare.
Better location data, richer content and deals/offers are Foursquare’s ticket to mainstream adoption in the US and European markets. In my view, Foursquare will need to tie itself more closely to local deals, either through acquisition or a deep partnership.
Of course Yelp and Foursquare can co-exist. People use multiple sources to make buying decisions (2-3 sources on average according to recent LSA research).
Foursquare’s ultimate destiny is probably to be acquired by a Google or Microsoft or perhaps even Apple. Investors probably have some milestones they want to hit before taking any acquisition offers seriously however.