TinyURL has been with Twitter since its inception but the bit.ly service has a few advantages over it and some even benefit the users. bit.ly makes URL’s shorter than TinyURL which in the limited space that 140 characters is can be advantageous. Just think of the tragedy if one of your followers couldn’t get the additional exclamation point you had to share so you could really get your emotion across to them. Oh, the humanity!
The more likely reason that bit.y gets this honor is that it is backed by startup accelerator Betaworks which can also count other Twitter related and owned companies like Summize among its lineup. Also, two early Twitter investors, Chris Sacca and Ron Conway are bit.ly backers. I am pretty sure that anyone can connect the dots on this one.
As Twitter gains more and more power it will obviously be beneficial to any organization that has ties to its initial investors. Betaworks seems poised to ride the wave.