Why Google acquisition of WAZE makes sense

1. Why Google’s acquisition of WAZE makes sense
(Google deal for biting and gobbling "Waze"....for about $1.1 billion...)
Marutish V
marutish@gmail.com
Market Consultant
11th June 2013

2. 1. 0 Google’s map strategy
Google is a global leader in developing products and services for
visualize business and consumer data. Google is committed to
providing users with relevant local information. Globally it has
organized information around more than 80 million places globally
from various sources across the web. Users can find addresses,
phone numbers, hours of operation, directions and more for
millions of local queries like shops, restaurants, parks and
landmarks right on Google.com, on Google Maps and on Google
Maps for mobile. They can also discover more places that are right
for them by rating the places they’ve been, and getting customized
recommendations based on their tastes and those of their friends
directly within Google Maps. Its products and services also help
local business owners manage their online presence and connect
with potential customers.

3. 1.0 Look and feel of maps : Changing
Currently, 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 map
domain. Earlier search was limited only to the web
experience. Google with its Internet based maps has
outpaced all other competitors in online maps domain.

4. 1.0 Google map strategy : June 2013 onwards
Google’s strategy is to weave maps into the maps into the Social
domain. i.e. add the social dimension to its current maps. For
instance, Google wants users to provide real time location
information of where they are, where they are going, where
they have shopped earlier or had their dinner last week, but
also what their friends have tried in a particular location and
which locations their friends liked in the past. Its strategy is
adding the social dimension to its traditional mapping platform
provides it new revenue streams to monetize from both its web
based and mobile advertising services….

5. 2.0 What is Waze
Waze is the world's fastest-growing community-based traffic and
navigation app. By connecting drivers to one another, it helps
people create local driving communities that work together to
improve the quality of everyone's daily driving. That might mean
helping them avoid the frustration of sitting in traffic, cluing them
in to a police trap or shaving five minutes off of their regular
commute by showing them new routes they never even knew
about.
What is Waze building ?
Waze is building a real time crowdsourced geographic data
processing platform. While "Waze" is building its network of maps
and has real time maps updates using its crowd sourcing model.... It
believes it will create both differentiation and engagement by both
advertisers and consumers.

6. 2.0 How does Waze works
By simply driving with the app open on the phone, users passively
contribute traffic and other road data that helps the Waze system
to provide other Waze drivers with the most optimal route to their
destination, including live traffic information. But users can also
take a more active role by reporting on accidents, police traps, or
any other hazards along the way, helping to give other users in the
area a 'heads-up' about what's to come and contributing to the
common good out there on the road.
Some of the Waze community members with a passion for maps
also take an even more active role by editing and updating the
Waze map, itself. Most of the editing work is done on the Waze
website, but some parts, such as the naming of streets, is done
through the application directly.

7. 3.0 How did Waze fit the bill for Google
• Currently Google maps are dumb and have no real time data or
updates....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 services
with a strong social component.
• Further it will helps Google to ward off competition in this space
and keep its lead viz-a-viz competiton.
• It is an area of strength for Google – it will not allow
competition(read Apple/Facebook/Microsoft) to bite into this
market.

8. 3.0 How did Waze fit the bill for Google
Advertisers will be willing to pay a premium to Google with this
acquisition
•With the acquisition of Waze – Google will be able to provide its
advertisers local, real time and contextual and locational based
information. Advertisers will be able to plug into the social
context and hence get richer leads. Also more advertisers will be
willing to pay for this rich contextual information.
•Google has a ready infrastructure to use the Waze platform…it
will put an effort to integrate its mapping platform with the Waze
platform and monetize revenues within a quarter or two. In the
case of its competition, such as Apple, Facebook or Microsoft all
these companies don’t have a ready mapping platform and for
them to monetize the revenue streams it would have taken not
less than 4-6 quarters at a minimum to integrate Waze
operations with their businesses..

9. Thank you