Foursquare Launches Local Recommendation Service

Foursquare appears to be continuing to reinvent itself with the new release of its local recommendation service.  This follows the company’s recent decision to divide itself into two distinct apps, with all of these moves seeming to signify Foursquare’s attempts to expand its reach by rebranding itself.

The recent divide resulted in a new app called Swarm, which does the things that users already associate with Foursquare, namely allowing them to check into physical locations.  The other service, which retains the Foursquare name, is more of a Yelp-like service, but with the addition of several of its own personalization features.

“In a couple weeks, we’re rolling out a brand new version of Foursquare that’s all about you,” the company wrote in a blog post.  “Tell us what you like, and we’ll be on the lookout for great places that match your tastes, wherever you are.”

The company has also announced a new logo as part of its reinvention process.  Jon Steinback, Foursquare’s vice president of product experience, says the new, bright pink logo, modeled after a place pin and a superhero emblem, better represents what the brand means in 2014.  He explained that the new focus of Foursquare is about highly personalized local search.

Although speculation about the demise of Foursquare has existed in the industry for some time now, the company recently reported a revenue increase of approximately 600% in 2013.  During the first quarter of 2014, year-over-year revenue growth was on track to exceed 500%, CEO Dennis Crowley said recently during an on-air interview with CNBC.  Some industry analysts attribute Foursquare’s growth to a shift from reward-based friend-tracking to its Yelp-like local business listings and reviews.  It was therefore no surprise when the company announced its plan to split itself into two distinct apps.

However, one question that remains is whether or not the new Foursquare will be able to compete with giants like Yelp and Google, both of which offer lots of resources within local search.  Greg Sterling, of Sterling Market Intelligence, explains the challenges that lie ahead for Foursquare.  “I think that they are doing some very innovative things with their user data and they have sophistication on the back end that Yelp doesn’t have,” said Sterling.  “It depends on how the product looks and functions.  If it’s just a new coat of paint on the same user experience, then chances are pretty limited that they’re going to draw a new audience.”

Will Foursquare’s offering of local business, parks and other information draw more people to use its services?  It’s still too early to know for sure, but the company retains high hopes for the revitalization of its brand to result in attracting a wave of new users.