Quickly answer this question...did you start working on your idea to build a business or create something to sell right away? The answer should tell you where your passion is. Passion is what gets you through the rough spots (as corny as that sounds).

No matter what the answer is, the next step is to study these competing services to figure out what your compelling point of difference is. Improve your product based on what you find. If you choose to try to work jointly, you'll be on favorable terms coming into the discussion. If not, you'll have something that works better than the competition.