You actually started first but someone else does it first. do you still launch as competition or quit give up and go back in the closet ?
Don't give it up right away!
How big is the market? Is the competition well funded? Do you have a sense of how many customers/users they have?
So long as you can compete in customer acquisition and the market is big enough, there's no reason to quit just yet. It takes years for companies to reach critical mass and there's usually room for more than one player. Try and think a little bit about how to differentiate yourself.
Good luck!