So Foursquare grew 3400% last year. Is next stop China?

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To celebrate its 6 millionth user and a successful 2010, Foursquare created an infographic (see below) to showcase how the world is using the location-based service. To date, there are more than 381 million check-ins across the world.

The graphic map also shows that Foursquare is highly popular in the U.S, Europe, South East Asia and Japan. Interestingly, Japan holds two of the top 3 train station check-in locations. The rest of the locations are pretty much dominated by the U.S.

Like most tech companies in the U.S, China is dearly missing in the Foursquare’s portfolio of countries. It isn’t that bad for Foursquare. Despite being blocked in China, there are at least some indications of usage around the region. On the other hand, Jiepang, a Chinese Foursquare clone is definitely doing way better. The important question is: Should Foursquare acquire Jiepang to enter China? The same was asked on Quora and most answers are “no”.

Paul Denlinger, who has experience working with three start-ups and in the advertising industry in China said, “No. There is no guarantee that the Chinese government would not block Jiepang if Foursquare bought it. If that is the case, then what is the point of buying it? (Foursquare was blocked in China when many went to Tiananmen on June 4, and started checking in.)”

“Besides, most Jiepang users use Chinese, while most Foursquare users use English. There is little language overlap, so there is little language synergy. This makes it difficult to conduct ad campaigns.”

I voted for Denlinger’s answer because it was logically well explained. However, I feel that Foursquare has to make a quick decision before Jiepang grows too huge to be acquired. Acquiring Jiepang doesn’t necessary mean it has to be rebranded to Foursquare immediately. Foursquare should work with the rules and not against them.

The acquisition, if fruitful, will give Foursquare a glimpse of hope in China at least. Most importantly, it is the Jiepang team that matters the most. The team can help Foursquare penetrate and expand in China while Dennis Crowley and team focus on the U.S market. The rebranding can come in when the Chinese government has more confidence and lifts the ban on Foursquare.

Nonetheless, even if Foursquare were to offer, I doubt Jiepang will take the bait (unless a monstrous bid is given out of desperation). David Liu, founder of Jiepang, probably knows that his company still has a lot more to grow in valuation. Location-based service is only at the infant stage in China, Taiwan and Hong Kong. So why sell now when more can be made in the near future?

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