Facebook Location - of Sharks and Remoras

Today Facebook announced their much pre-heralded Location service, Places. The interesting thing is how they are treating competitors such as FourSquare and Gowalla - are they partnering with them or planning to eat them? TechCrunch:

Representatives from both Gowalla and Foursquare were invited to take the stage at the event to talk about how they plan to leverage Facebook’s new Places API. Both will allow you to check-in and publish the data to your Facebook feed. Your badges and pins from each of those apps will transfer over as well. As we expected, Facebook is playing nice with these guys — and they’re clearly excited to play nicely back given Facebook’s 500 million users.

Yelp and Booyah (maker of MyTown) are also launch partners for this new API. Booyah is actually making a new app called InCrowd build on the Places API. WIth Yelp, you’ll be able to transfer your check-ins both to and from Facebook as well.

Its easy to see why Facebook wants this, and the probable outcome is predictable (recall the wailing when Twitter started to eat its own ecosystem?).

Foursquare and Gowalla are cleft on the horns of a dilemma - collaborate and (maybe) get access to 500m users, but you are then on your large competitor's platfotm and at their mercy. Defect and you will probably struggle to recruit Facebook customers, unless of course users want independent alternatives (I would, as I'd prefer to keep my data split up among the dataminers, as a first line of defence). But the facebook logo - a pin through the heart of a 4 in a square - may say it all....

But they have clearly taken the Remora option - stick around to get scraps from the big fish, hope you can clamp on, and avoid being eaten.

Watch the body language of the Foursquare and Gowalla people at the announcement (its on the techCrunch link above), they looked somewhat uncomfortable as "guests" at the feast. There is no such thing as a free lunch, unless its you......

Yelp and Booyah are in a different position as they are not direct competitors.....yet.