Location based service, Foursquare, recently crossed a new landmark, when they reached the 3 million user mark in the end of August.
The service which was launched in March 2009, took more than 1 year to reach 1 million users. The next million came in, just 3 months later and the third million was reached just one and a half months after that.
While it was initially assumed that location based services such as Foursquare and Gowalla would receive stiff competition from the launch of Facebook Places, that does not seem to have happened as yet. In fact, co-founder Dennis Crowley said that foursquare received that largest number of sign in one day, the very day after Facebook Places was launched. He also says that Foursquare is receiving about 18,000 new users per day.
Other location based services such as My Town and Loopt have already amassed over 3 million users before Foursquare, but one of the main attractions for users to sign up with Foursquare seems to be their practice of rewarding users with badges and points.
However if they hope to compete successfully with the 500 million users of Facebook in the long run, they will have to diversify and improve their services.
They have recently managed to raise $20 million in funding, which they will use to employ more staff and also to get new premises and spread to San Francisco.