Google grabs maps app Waze in billion-dollar deal

PHOTO | SCOTT OLSON A view inside Google's office on June 11, 2013 in Chicago, Illinois. Google has announced a deal reported to worth over $1 billion for crowd-sourced map app Waze  GETTY IMAGES | AFP

 

 

 

 

 

 

 

 

 

 

NEW YORK

Google on Tuesday announced a deal reported to worth over $1 billion for crowd-sourced map app Waze in a move to stay ahead of Apple and Facebook in lifestyles centred on smartphones and tablets.

The US Internet search giant did not reveal the price it is paying for Israel-based Waze, but Israeli news outlets Globes and Calcalist over the weekend estimated the deal's value at $1.3 billion.

"To help you outsmart traffic, today we're excited to announce we've closed the acquisition of Waze," said Brian McClendon, vice president of Google's Geo products, which includes Google Maps, Earth and Street View.

"This fast-growing community of traffic-obsessed drivers is working together to find the best routes from home to work, every day."

McClendon said that Waze's development team would remain in Israel and operate separately "for now."

"We're excited about the prospect of enhancing Google Maps with some of the traffic update features provided by Waze and enhancing Waze with Google's search capabilities."

The big-ticket takeover comes as Google duels with Apple and other rivals to be at the heart of mobile Internet lifestyles, particularly when it comes to providing advertising or services relevant to where people are at any moment.

Waze taps into the collective knowledge of road warriors in order to make life more pleasant for drivers while creating reliable street maps.

"Maps are only growing in importance," said Forrester analyst Julie Ask.

"They will become the primary portal on mobile phones for a growing list of information and services."

A free Waze service that proved its worth in Israel made its US debut about four years ago, inviting motorists to use smart phones to keep one another in the know about speed traps, short cuts, hazards, accidents and more.

"It seems like a silly thing, but it is addictive," Waze chief executive Noam Bardin told AFP at the time of the US debut.

"There is this feeling that you are not alone... Some people just like knowing someone else is out there."

Satellite tracking technology commonly built into smart phones lets Waze automatically measure traffic flow while simultaneously verifying or modifying public street information in its database.

Motorists "teach" Waze computers where roads are and how best to manoeuver about simply by driving.

Drivers can upload comments, along with pictures, from along their routes to alert fellow "Wazers" to anything from accidents or detours to a favorite place to grab a cup of coffee. Waze also provides users with turn-by-turn directions.

While Waze acts as a handy, free navigation tool for drivers, it is at its core a "wiki" style approach to map making: Waze users are essentially feeding updated street information to the service every time they drive