Foursquare's Lead in Location Services

Foursquare's new deal with American Express to offer cash back deals with select retailers is a big step forward in offering real value to its users. Foursquare has over 10 million registered users, well ahead of rivals like Gowalla. Other services like Facebook, Google and Yelp have incorporated the concept of check-ins, but a recent Pew study shows that only 4% of Americans had tried location-based services.

New redesigns to the Foursquare user interface emphasize the specials and deals. They've added an explore button which specifically points to specials offered by merchants nearby. The explore button also allows users to target specific types of destinations such as Food, Coffee, Nightlife, Shops, etc. Location-based services and check-ins are nice concepts, but where' the business? Despite the publicity over the American Express agreement, it was also made clear that Foursquare is not getting any revenue from Amex in the deal.