I would take it as a positive thing, it shows a level of validation that someone has independently come up with the same idea. You can analyse what they have done and learn from their mistakes.

Other things to consider:

1. Is there only room for one product solving this problem?
2. what can you offer that this competitor does not?
3. have belief in yourself and your ability to add personal value

I recommend you take a deep breath, consider the above, don't make any rash decisions, if they've been live for 11 months another few weeks won't make much of a difference.