Google’s most recent purchase and fourth largest by far at a billion dollars is the Israel-based Waze, a relatively unknown start up that was founded four years ago. The Waze app, which is reportedly worth US$1.3 billion is a crowd-sourced satellite navigation tool that combines updates from users caught (or not) in traffic with online maps. The app also allows for sharing of information on road works and accidents in real time. Google might just get the advantage it is looking for over the competition in the mobile mapping arena with this breakthrough app.
The announcement was made by Google on Tuesday, but there is no confirmation from the company yet as to how much the deal was worth. The firm was also said to be on the radar of both Facebook and Apple. Both were reportedly courting or circling the company in recent months and that could’ve motivated Google to close the deal.
Why Waze?
According to an official blog, Google’s main intention for buying Waze is to enhance Google Maps with traffic updates, improving the accuracy of its services. Drivers using the app can reach their destinations faster via the quickest route available at that particular time. With this merger in place, Waze will now have Google’s user-friendly and quite satisfactory search capabilities. The tech giant reiterated that Waze would not be fused with Maps but will remain a separate entity.
According to Google, Waze creators and users have come up with a great source of timely road corrections and updates. Perhaps, Google is also a bit on the defensive since the up and coming Waze could very well pose a threat to its own Maps services in the near future.
Satellite Navigation App Waze
The Waze app has the capability to turn any smartphone capable of supporting it into a GPS device with social networking features. The app tracks users passively via GPS in order to generate real-time traffic information and road conditions. The result is an online mapping product that gives the user updated, more accurate information on traffic conditions and directions.
The free app currently has 47 million users around the world. Reports claim that about 1/3 of the almost 50 million users use the app in any given month. The company revealed that in June 2012, more than 20 million people were using Waze, double the numbers reported only half a year before.
Formerly Linqmap
Waze was founded by Uri Levine, Amir Shinar, and Ehud Shabtai and originally given the name Linqmap. Today, Waze has its US headquarters in Palo Alto in California. Noam Bardin, the chief executive has an office there along with a handful of employees. Most of the Waze manpower and technical staff are in Tel Aviv. The word is out that the product development team will stay in Israel for now.
How to outsmart traffic
Google justified the Waze acquisition as a means of helping traffic-obsessed drivers find the best routes to and from work every single day. Drivers are gaining an ally and Google could have outsmarted the competition despite the hefty price tag. With Waze, Google users can share sites that they have visited as well as actual places visited physically.
Photo Credit: Installation art inspired by popular Google Maps icon
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