Let this be a lesson to anyone working on a product. I've been building an app that does exactly the same thing for the last couple of months. You have to be first to market.
The point is his app is nowhere near critical mass and there is likely a fair amount of room for competition. Think of his success as proof there is a demand for apps like his (and yours).
Ever notice how a lot of web pages used to suck. Nowadays a lot of apps are like that (present app excepted :-). Keep going!