{"id":750475,"date":"2013-05-09T12:01:32","date_gmt":"2013-05-09T16:01:32","guid":{"rendered":"http:\/\/gigaom.com\/?p=643774"},"modified":"2013-05-09T12:01:32","modified_gmt":"2013-05-09T16:01:32","slug":"losing-its-way-why-google-would-be-stupid-to-let-facebook-acquire-waze","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/750475","title":{"rendered":"Losing its way: Why Google would be stupid to let Facebook acquire Waze"},"content":{"rendered":"

According to a number of reports<\/a> in the Israeli media, Facebook is in advanced talks with Waze — a mobile mapping and traffic-information service based in Israel — about acquiring the company for as much as $1 billion<\/a>. This is not the first time Waze has been the subject of acquisition rumors: Apple was reported to be in talks with the company in January, although that report was later debunked<\/a>. But while Apple could definitely benefit from buying Waze, the one who needs it most is Google.<\/p>

For those who may not have used it, Waze — which won our Launchpad event at Mobilize in 2009 — provides real-time information<\/a> about everything from road closures and accidents to traffic backups and police speed-traps. The information is superimposed on a scrollable map, and there are also a number of social features built in, which allow users to see and share information, including messages, with other drivers<\/a>. Waze even provides gas-price data.<\/p>

\"waze-screenshot\"<\/a><\/p>

Facebook wants to acquire mobile users<\/h2>

If Facebook does acquire Waze for $1 billion, as reported by Israeli media outlets<\/a> like Calcalist and Ynet, it would be one of the biggest acquisitions the social network has ever made, rivalling the purchase of mobile photo-sharing service Instagram (which signed a deal for $1 billion but actually wound up being acquired for $750 million due to a drop in Facebook’s share price). And the rationale for the deal would be much the same as it was for Instagram<\/a> — namely, acquiring and holding onto mobile users.<\/p>

As my colleague Erica Ogg explained when the Apple rumors were floated earlier this year, Apple would also make a good fit for Waze, in part because the company’s mapping app<\/a> is seen by many as an also-ran to Google’s more feature-rich service — which is why there was such an outcry last year when Apple suddenly cut off Google and switched iOS users to its own maps<\/a>.<\/p>

But while Apple would be a good fit, and Facebook has its own reasons for wanting a service like Waze, I think Google would be the real loser if it went to either of these companies, for the simple reason that Google Maps is a big part of the company’s mobile appeal — at least for me, and I would suspect for many others. My reliance on Google Maps was one of the reasons why Apple’s move irritated me and helped push me towards the Android platform<\/a>, and Waze is good enough that it could help either Apple or Facebook leap-frog Google.<\/p>

\"Waze-NewYork\"<\/a><\/p>

Google has the most to lose<\/h2>

I’ll admit that I was somewhat skeptical about the value of Waze until I tried using it on a long drive from Florida to Toronto earlier this year. I had looked at the service a few times, but it didn’t have a lot of data or users in Canada (it now has about 45 million users worldwide<\/a>) and I didn’t see the appeal of the social elements. But when I started using it during this long drive, its utility quickly became obvious — and I stopped using Google Maps altogether.<\/p>

I’m not yet sold on the ability to connect with other users through the app<\/a> (unless they are friends already, which would make sense if you were on a trip together), but being able to see at a glance where there is a traffic jam — and even what speed people are going who are stuck in it — and where there’s a speed trap or a police car on the roadside was hugely useful. The gas price data also came in handy<\/a> more than once.<\/p>

Google Maps also has traffic data, and it is also based on real-time information, which comes from other users of the service who have their GPS location turned on<\/a>. It is pretty accurate — but I don’t find it nearly as useful as Waze. I didn’t think enough people would take the time to enter information about things like traffic or speed traps into Waze to make it useful, but I was wrong. And Google doesn’t seem to have any plans to try and duplicate that, since it is more focused on automating that whole process, in typical Google fashion.<\/p>

There’s no sign that Google has shown an interest in acquiring Waze, but I think the company would be stupid not to at least consider trumping Facebook’s offer. It could wind up losing its way, and a bunch of mobile users to boot.<\/p>

Post and thumbnail photos courtesy of Flickr user Dunechaser<\/a> and Waze<\/em><\/p>
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