No. Take it as a strong positive signal that there is demand and ask yourself how you can differentiate from your competitor. Will you have a better UI, a niche

No. Take it as a strong positive signal that there is demand and ask yourself how you can differentiate from your competitor. Will you have a better UI, a niche market to address, etc.? The question is how you position yourself in respect to the competition. If you believe that there is indeed absolutely no hope for your startup, then... there's not much to say. If you want to take this battle, you'll find a way to position yourself. Edit: I just saw that your competitor is UK-only. Are you based in UK too?