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If there was a search engine better than Google, it would be a semantic one, not human-powered.
Kind of sad to hear this, actually, because I liked that Search Wikia put some spotlight on human-powered search, which helped our site Bessed to be easily understood when we explained the concept. We'll keep plugging away, though, as we're still growing, and God knows Jason Calacanis makes enough noise in this space that the human-powered aspect of search will not go down quietly.
I tried it out in the beginning and it was not easy enough compared with traditional search engines and it had to start from scratch (almost).
And I guess it never made it to the general public at all...
I think the big mistake is they tried to take on google directly. We are "taking on" google with about 20% of our service (the top 7 links), the rest of what we do is high-quality, original content which gets indexed within Google.
The best way to win vs. Google is not compete with them, but rather co-exist with them/along side them.
On another note, Mahalo is hiring developers so if any of the Wikia staff is looking for work send me their resume at jason at mahalo.com. We have four years of capital in the bank and will hit breakeven in the next 9-12 months. We've well over five million monthly uniques and Mahalo 2.0 comes out in June and it's really solid I think. Should get us to 10m uniques--which would make us very profitable.
Mahalo is less of a search engine and more of a potential Wikipedia competitor. It does more than aggregate selected links like DMOZ. It provides a lot of information in the sidebar. It organizes information that really is kind of interesting. It has the potential to do more than it is just with how it is laid out.
I'm just not certain how well that will ultimately work out because when you are relying on paid contributors, not giving your visitors any real investment in your core product, making it difficult for small businesses to use your site to help them, meh. I'm just cynical. :/ I've yet to find a reason to use Mahalo for search because none of the content I want to search for is searchable there.
*babbles*