Google Acquires Waze: What It Means

Maps are only growing in importance as they become the primary portal on mobile phones for a growing list of information and services. As Apple showed us last year, it's critical to own maps - and to do maps well, particularly as a growing percentage of time is spent discovering, accessing, and engaging content within maps. With that said, it's not immediately clear to me what justifies a $1B+ (reported) price tag for Google’s acquisition of Waze, but I'll assume they did great due diligence or offered a high price to get a deal done.   

For instance, many companies do acquisitions for audience, but Google's audience - even just on Android or Google Maps is substantial. Waze's website says 30M users; other sources say 50M. Apparently, engagement among users is high ... but is it well distributed? Are there enough active users in each market for the same excellent experience?

However, Waze does add new features that Google Maps doesn't already have e.g., the ability of users to report traffic issues, police cameras, broken down vehicles - you name it. Layering user-generated content into maps in real time in a way that makes sense and is useful to everyone at that place at that moment is not typical. Mobile needs to be highly contextual in ways people are beginning to understand, but are really struggling to implement well.  It also increases speed to market if Google/Android team were otherwise developing this on their own.

With maps integrated into every retail, travel, banking, insurance, (ok go down the list) app on your phone, I don’t think any company can have too much map technology, or too many engineers/developers for maps and navigation technology. 

Comments

Feed-back from a regular Wazer

Hi Julie, nice post, thanks.
I think Waze is the most innovative navigation application since a decade.
It brings the power of social networks to car drivers. Signalling of hidden police, radars, road blockages, dangers... It also captures the speed of the vehicle during the trip, averages it on each road segment and uses that for updating in real-time the travel times... All that without a huge electronic infrastructure on the roads, the mobile app does it all. That's a major disruption for traffic management.
I have no doubt that Google and Waze will converge their maps. Note that the biggest benefit might be for Google here as the continuous location information returned from the wazers can be used to identify obsolete or new road segments. The update of road maps could be done much faster than today.