Google And Waze: A Whopping $1.1 Billion Deal

waze_logoAfter months of speculation, the fate of Waze has finally been decided.  Google procured Waze for $1.1 Billion giving the search monster a social data boost to its already powerful mapping and mobile industry.  The news materialized after remarkably heated past few days in which affirmations of Google’s interest in acquiring Waze achieved further heights after initially coming to light a couple of weeks ago.

As oodles of customers are rapidly switching to smart phones and tablets and away from their personal computers, Google is well escalating efforts to woo consumers on the move.  The mobile app of Waze solicits contribution from more than 40 million operators to improve directions and reveal traffic and road-hazard elements which would assist Google to enhance social features of its mapping gizmo.  It may also aid Google broaden its supremacy in maps over rival Apple Inc.

According to Waze’s company blog post, the aggregate user base for Waze has augmented from 36 million to 50 million in the preceding six months.  Google has shelled out $1.1 billion for securing Waze, which translates into $22 for every single Waze’s active user.  This perhaps could seem pricey, but taking into account that Waze now has access to Google’s advertising and global influence, the growth prospect at Waze is incalculable.

While it is claimed that the prime intention for Google’s acquirement of Waze is to keep opponents such as Facebook and Apple at bay, it is deemed to have more acquisition than what it seems.  Waze also broaches the subject on the blog post as to why it elected for the deal mentioning that it was inspired by the fact that an IPO appeared the route that would take the firm more into being fixated on returns and less on emerging as a product for users.  Brian McClendon, Google’s VP of Geo, commented on the deal in the blog post as “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.”

Owing to this acquisition, Google can now integrate social features of Waze into Google Maps.  Furthermore, Google can also incorporate some of the Waze’s elements such as user edited maps that provides real time data and can thereby boost its user commitment.  Additionally, Google can promote Waze’s user point reward agenda to encourage users which could be used for shopping across Google platforms increasing returns from cross-selling products.


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