Ask HN: building a product for 6 months, beaten to the punch

HNers, what do you do when you're beaten to the punch by a competitor?

I've been working on a service/product for the past 7 months. Everything was going great with a fantastic response from beta testers. Now, a few weeks before our public release, a competitor has brought out a very similar service. They're getting plenty of coverage as the first to enter into this segment of the market.

Am I screwed? Without the first mover advantage, it feels like all my work may have been a waste.