it looks like it's the same problem color.com had - sparse users (geographically), thus making the app "useless"?
I didn't check the app (and groovy.me is a parked domain), but couldn't you bake in any feature that would ask for people to bring in friends/spreading virally?
I didn't realize that color.com had a similar problem. The only thing I remember about them is that they spent 350k purchasing their domain name. We did have features that allowed people to share events but didn't actually offer any incentive to spread virally. It was something we should've done, but we couldn't think of what we could do- there isn't really a incentive we can offer to joining an event. We could give our free drinks- but there's a limit of how much freebies we can provide. The idea was that once they actually try out an event in real life, they would find value and find it worth it to share to their friends then. I admit though, this should be a much bigger priority on our list.
I didn't check the app (and groovy.me is a parked domain), but couldn't you bake in any feature that would ask for people to bring in friends/spreading virally?