A report by Bloomberg this morning suggests that Google may be interested in buying Waze Inc., a mapping software provider. Facebook is also an interested party in purchasing the Palo Alto-based startup, and supposedly its consideration actually prompted that of Google’s setting up what could be a high-powered bidding war.
Waze’s free app for Android and iOS uses information from online sources to improve driving directions, much the same way Google’s updated Google Maps does. Waze’s mapping alerts the user of potential driving obstacles ahead, from accidents to rush-hour traffic to speed traps, and subsequently suggests alternate travelling routes.
Similarly, Google announced updates to its Google Maps for Android during the Google I/O keynote session earlier this month. Its software also transmits live coverage of roadblocks ahead and suggests viable substitute detours. Waze’s additional software would only bolster Google’s position as having one of the most popular mapping and tracking tools on mobile devices to date.
Facebook’s interest may stem from its desire to grow on mobile devices after its Facebook Home app turned out to be an absolute bust. The mobile market is growing quickly with an increased use of smartphone and tablets on the go, and Facebook is logically looking to get in on the action. Currently, Facebook uses a mapping interface by Bing, but we all know that Zuck likes things his way, or the highway.
This isn’t Facebook’s first foray into the mapping realm either. Back in April, Bloomberg also reported of Facebook poaching Richard Williamson, the manager who had led Apple’s mapping efforts, to help lead FB’s expansion into the mobile market. Williamson, though, was fired by Apple after the Cupertino-based electronics giant’s mapping service was “criticized for misguided directions and inaccurate landmark locations.”
Waze has yet to comment on which company it would prefer to be acquired by. In fact, Bloomberg notes that Waze would be just as content to remain an independent and seek to raise another round venture funding instead. Back in 2011, it garnered a $30 million round, in which Microsoft participated as an investor. Currently, the bidding price for Waze sits at around $1 billion.
Waze could prove to be a smart buy for Google, even if its own mapping software is superior, in order to help diminish the possibility of competition from the most popular social network in the world. Stay tuned to BostInno for the latest information regarding the lavish deal.
