Why Google’s acquisition of WAZE makes sense(Google deal for biting and gobbling "Waze"....for about $1.1 billion...)Marutish Vmarutish@gmail.comMarket Consultant11th June 2013
1. 0 Google’s map strategyGoogle is a global leader in developing products and services forvisualize business and consumer data. Google is committed toproviding users with relevant local information. Globally it hasorganized information around more than 80 million places globallyfrom various sources across the web. Users can find addresses,phone numbers, hours of operation, directions and more formillions of local queries like shops, restaurants, parks andlandmarks right on Google.com, on Google Maps and on GoogleMaps for mobile. They can also discover more places that are rightfor them by rating the places they’ve been, and getting customizedrecommendations based on their tastes and those of their friendsdirectly within Google Maps. Its products and services also helplocal business owners manage their online presence and connectwith potential customers.
1.0 Look and feel of maps : ChangingCurrently, Google is changing the look and feel of its maps.Today the maps are far simple and have a streamlined look.Further search results are now entering into the mapdomain. Earlier search was limited only to the webexperience. Google with its Internet based maps hasoutpaced all other competitors in online maps domain.
1.0 Google map strategy : June 2013 onwardsGoogle’s strategy is to weave maps into the maps into the Socialdomain. i.e. add the social dimension to its current maps. Forinstance, Google wants users to provide real time locationinformation of where they are, where they are going, wherethey have shopped earlier or had their dinner last week, butalso what their friends have tried in a particular location andwhich locations their friends liked in the past. Its strategy isadding the social dimension to its traditional mapping platformprovides it new revenue streams to monetize from both its webbased and mobile advertising services….
2.0 What is WazeWaze is the worlds fastest-growing community-based traffic andnavigation app. By connecting drivers to one another, it helpspeople create local driving communities that work together toimprove the quality of everyones daily driving. That might meanhelping them avoid the frustration of sitting in traffic, cluing themin to a police trap or shaving five minutes off of their regularcommute by showing them new routes they never even knewabout.What is Waze building ?Waze is building a real time crowdsourced geographic dataprocessing platform. While "Waze" is building its network of mapsand has real time maps updates using its crowd sourcing model.... Itbelieves it will create both differentiation and engagement by bothadvertisers and consumers.
2.0 How does Waze worksBy simply driving with the app open on the phone, users passivelycontribute traffic and other road data that helps the Waze systemto provide other Waze drivers with the most optimal route to theirdestination, including live traffic information. But users can alsotake a more active role by reporting on accidents, police traps, orany other hazards along the way, helping to give other users in thearea a heads-up about whats to come and contributing to thecommon good out there on the road.Some of the Waze community members with a passion for mapsalso take an even more active role by editing and updating theWaze map, itself. Most of the editing work is done on the Wazewebsite, but some parts, such as the naming of streets, is donethrough the application directly.
3.0 How did Waze fit the bill for Google• Currently Google maps are dumb and have no real time data orupdates....the map updates are orchestrated periodically.Acquisition of WAZE mapping app helps Google• It helps Google in buying a competitive mapping platform• It also helps Google by providing a fillip into the field of serviceswith a strong social component.• Further it will helps Google to ward off competition in this spaceand keep its lead viz-a-viz competiton.• It is an area of strength for Google – it will not allowcompetition(read Apple/Facebook/Microsoft) to bite into thismarket.
3.0 How did Waze fit the bill for GoogleAdvertisers will be willing to pay a premium to Google with thisacquisition•With the acquisition of Waze – Google will be able to provide itsadvertisers local, real time and contextual and locational basedinformation. Advertisers will be able to plug into the socialcontext and hence get richer leads. Also more advertisers will bewilling to pay for this rich contextual information.•Google has a ready infrastructure to use the Waze platform…itwill put an effort to integrate its mapping platform with the Wazeplatform and monetize revenues within a quarter or two. In thecase of its competition, such as Apple, Facebook or Microsoft allthese companies don’t have a ready mapping platform and forthem to monetize the revenue streams it would have taken notless than 4-6 quarters at a minimum to integrate Wazeoperations with their businesses..