Why did Google spend a billion dollars on Waze?

MrsMith

Google Maps is already great, and it already shows users the traffic conditions through use of different colors for routes based on congestion/delays. Yet, they spent $1.1 BILLION dollars to purchase Waze (an Israeli mapping company). Sure, a billion bucks doesn't mean the same thing to Google as it does to me, but I’d think even to them it is a tidy sum. What could Waze possibly have to offer Google that justifies the cost?

Tags: google, Waze
Topic: Business
Answer this Question

Answers

3 total
jimlynch
Vote Up (9)

Most likely to keep Apple, Facebook and Microsoft away from Waze. It certainly wouldn't be the first time such a thing has happened in the technology world, and it won't be the last.

hughye
Vote Up (9)

One very important thing this does is prevent anyone else from purchasing Waze. Google probably saw the potential for Waze to turn into a viable competitor for Google Maps if a company with the resources and inclination to make it happen acquired them instead. Such as Apple, for instance, or perhaps Microsoft.

 

Beyond that, Google has made a concerted push into social media as we’ve seen with Google+ being tied to practically all Google services. Waze brings experience extending social media to mapping with its model of persistent and real-time crowd sourced data. 

Christopher Nerney
Vote Up (6)

Haydn Shaughnessy, a contributor to Forbes, writes that the acquisition of Waze has implications beyond Google's business strategy:

 

"With the Waze purchase, Google has given a major endorsement to crowd investors and the risks they’ve  taken on this new model of business. 

 

"Google has moved crowd center stage and increased significantly  the value of major exits in the  crowdsourcing space."

 

 

 

 

Ask a question

Join Now or Sign In to ask a question.
In happier news, next week your PS4 will be able to play 3D Blu-rays, and why that matters.
Be sure to show your sysadmin how much you appreciate him or her today - but keep it sane
Customer experience experts share their tips on how businesses can keep customers happy and coming back for more.
We asked the SEO community to bring us up to date on the current state of link building, content marketing, social media and more.
Ecommerce, Web analytics and design experts share their tips on how to tell if your Web or ecommerce site needs fixing and how to improve it.
Forced into an arranged marriage of sorts, the CIO and CMO are trying their best to make things work. Still, disagreements arise. One out of four CIOs believe CMOs lack the vision to anticipate new digital channels, while many CMOs say CIOs lack the urgency needed to respond to shifting market conditions.
Those Normal 3D printed earbuds we looked at a few weeks ago have some competition, and OwnPhones are wireless (and of course, more expensive).
The cable giant’s attachment to its subscribers is getting downright creepy
Only six weeks after its release, Apple’s new programming language appears to already be on its way to replacing Objective-C
The recent release of Ubuntu 14.04 Long Term Support/LTS (Trusty Tahr) proves to us once again that it doesn't matter if you're Oracle, Microsoft, or Canonical: Bringing a fleet of products into new release revision synch is tough.
Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+