With Apple announcing updates to their mobile maps app at their developers conference yesterday many hoped that they would finally be getting it right. Google, however, isn’t waiting around to see if Apple is able to catch up in terms of providing high quality driving, navigation and mapping apps. They are reportedly in the final stages of completing a deal to purchase the Israeli based Waze app for $1.3 Billion dollars. Waze is a mapping app which allows users to share real time data about everything from gas prices to traffic conditions and much more.
With thirty million smartphones and other mobile devices already using the Waze app on both Apple and Android devices it has been an attractive buyout target for some time. There were reports that Google, Facebook and Apple were all courting the company over the past several months. Having the ability to acquire this innovative app, and its 30 million (and growing) loyal users will help boost the credibility of whichever company makes the purchase.
There are many things which make the app so popular including the fact that it is extremely simple to use and can save users a lot of time and money. Reporting things like large pot holes, accidents, speed traps and gas prices to other drivers in the area not only makes driving more efficient, but more enjoyable as well.
With a price tag of about $1.3 Billion the question that comes up is how will Google take this great app and use it to increase profits. Google’s obviously got the advertisement platform to use, but with this price tag they will likely want to make more money than that. Whether they charge for premium content or use some other monetization method is yet to be seen.
Of course, the deal could still fall through but according to reports the only details which still need to be worked out is whether or not the Waze team can continue working from Israel or if they will have to relocate to the Google HQ.
