Since Twitter’s release a handful of web startups have cropped up providing URL shortening, allowing a user to take a long URL and condense it to make it 140 character Twitter friendly. Apparently this service is hard to monetize. It looks like tr.im, a popular URL shortener service has gone under, posting this message on their homepage:

“tr.im is now in the process of discontinuing service, effective immediately.

Statistics can no longer be considered reliable, or reliably available going forward.
However, all tr.im links will continue to redirect, and will do so until at least December 31, 2009. Your tweets with tr.im URLs in them will not be affected.

We regret that it came to this, but all of our efforts to avoid it failed.
No business we approached wanted to purchase tr.im for even a minor amount.

There is no way for us to monetize URL shortening — users won’t pay for it — and we just can’t justify further development since Twitter has all but annointed bit.ly the market winner. There is simply no point for us to continue operating tr.im, and pay for its upkeep.

We apologize for the disruption and inconvenience this may cause you.”

I also found this interesting blurb from the tr.im blog: (bold is from me)

“And, the data that tr.im generates — the hottest links that people are sharing right now — is all well and good, but everyone has this data. tr.im gets hit by countless bots every day farming this data to create and operate websites such as tweetmeme.com. So, *everyone* has this data, meaning it is basically worthless *by itself* to base a business on (as bit.ly and others are attempting to do) at least in our humble opinions.

And finally, Twitter has all but sapped us of any last energy to double-down and develop tr.im further. What is the point? With bit.ly the Twitter default, and with us having no inside connection to Twitter, tr.im will lose over the the long-run no matter how good it may or may not be at this moment, or in the future.

So, in summary, there is simply no point in continuing to operate or work on tr.im, and we are moving on to greener pastures. We appreciate all the support and kind words about tr.im we received over the past 12 months, but change is ultimately good, and bit.ly can more than accommodate your URL shortening needs.”