{"id":16519,"date":"2016-11-18T00:20:00","date_gmt":"2016-11-18T05:20:00","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/waze-changing-the-face-of-digital-navigation\/"},"modified":"2016-11-18T00:20:00","modified_gmt":"2016-11-18T05:20:00","slug":"waze-changing-the-face-of-digital-navigation","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/waze-changing-the-face-of-digital-navigation\/","title":{"rendered":"Waze: Changing the Face of Digital Navigation"},"content":{"rendered":"

Meet Waze<\/strong><\/p>\n

Since its inception in 2007, Waze has become the world\u2019s largest community-based traffic and navigation app.\u00a0 Acquired by Google in 2013 for a reported $1.3 billion, Waze has more than 50 million users.[i]\u00a0 Like many other map applications, Waze is 100% free and provides users with turn-by-turn GPS navigation.[ii]<\/p>\n

So what makes Waze different?\u00a0 The answer is the company\u2019s unique crowdsourcing formula.\u00a0 \u201cRather than assiduously map out every single road, lane and byway, Waze relies on its millions of users to act as traffic cops, field ops and cartographers, flagging and recording updates on accidents, bottlenecks and traffic as they drive.\u201d[iii]<\/p>\n

The company\u2019s business model is simple \u2013 entice users to report real-time data that can be used to provide compelling \u201ccommunity\u201d benefits, attract more users, and subsequently leverage the value of an engaged audience.<\/p>\n

After entering a destination into the Waze app, users can either passively follow the directions, or they can participate in the app\u2019s social and geo-gaming elements to share road reports on accidents, police traps, and other driving hazards.[iv]\u00a0 Active data is collected using voice commands and icons, while passive data, such as the user\u2019s location and speed, is gathered via the user\u2019s smartphone.[v]\u00a0 Both are used by Waze to provide users with the most optimal route to their destination.<\/p>\n

New Business Innovations<\/strong><\/p>\n

The Waze crowdsourcing function has not only given the company a unique value proposition, but also a unique way of delivering on that promise.<\/p>\n

One of the most transformative aspects of the Waze operating model is the use of drivers as smart \u201csensors\u201d to collect real-time data.\u00a0 Relying on users for data has allowed Waze to build incredibly accurate maps at minimal cost.\u00a0 While Google spent millions on its Street View cars in order to map roads, Waze has spent nothing beyond what it already pays to make the app as attractive as possible for users.[vi]<\/p>\n

The company\u2019s fun and interactive, community-based platform has also helped attract more users to the app, allowing Waze to significantly grow its engaged user network.\u00a0 This has increased the company\u2019s access to real-time data, giving Waze greater ability to continuously improve its services, and has also made the app particularly attractive to advertisers.\u00a0 One opportunity made possible by the Waze app is location-guided advertising. By cross-referencing a driver\u2019s destination and intention, local businesses can identify themselves on Waze maps and use the app to send targeted messages to users who are driving nearby.[vii]<\/p>\n

Waze has created yet another competitive advantage and opportunity by creating two-way data exchanges with government municipalities.\u00a0 In 2014, Waze launched a “Connected Citizens program” with government partners including the city of Boston.\u00a0 The company provides governments with free access to real-time driver data in exchange for government data that is used in the Waze app, including information on accidents, road closures, construction, and city events. \u00a0Data from Waze allows cities to better track road conditions and traffic, helping them to plan ahead, reduce congestion, and improve routes.[viii] [ix]<\/p>\n

Potential Challenges Ahead<\/strong><\/p>\n

Like many other digital technologies that are transforming the status quo, Waze is facing a number of challenges.\u00a0 One unpredicted hurdle has been the frustration of residential homeowners, claiming their neighborhoods are now overrun with commuters using Waze.\u00a0 Some cities have introduced motions to \u201creduce the impact of cut-through traffic that results from use of Waze\u201d which may include new regulations that restrict the flexibility of Waze routes.[x]<\/p>\n

Police have also expressed frustration with the app due to the fact that Waze users can report the location of police cars.\u00a0 While intended to alert users of speed traps and accidents, Sheriffs claim the information can be used to plan attacks against law enforcement.\u00a0 Waze has defended the data, calling it an important traffic safety function, but new regulations could come into effect in the future.[xi]<\/p>\n

Future Opportunities<\/strong><\/p>\n

The strength of Waze is the company\u2019s crowdsourced collection of real-time data. In addition to developing its user base, Waze has an opportunity to expand into other place-based services.\u00a0 Examples include alerting users of events in their calendars, sending reminders when it\u2019s time to leave, and offering directions; helping to recommend restaurants and other entertainment activities and making reservations; identifying open parking spots; assisting with trip planning; and coordinating car pool programs for (vetted) Waze users.\u00a0 In addition, the company should consider expanding beyond drivers, and create separate platforms for walkers, bike riders, and people using public transportation.<\/p>\n

Waze should also continue to build its relationships with government municipalities.\u00a0 In addition to win-win data exchanges, this could present Waze with new business opportunities in the future, such as route management for government services like garbage pickup.\u00a0 Expanding data-sharing with cities will also help Waze build credibility with legislators \u2013 an asset that will be particularly important as lawmakers grapple with \u201cif\u201d and \u201chow\u201d they should regulate digital transformations like Waze in the future.<\/p>\n

 <\/p>\n

Word Count: 798<\/strong><\/p>\n

Endnotes<\/strong><\/p>\n

[i] Cohan, P. (2013, June 11). Four Reason Google Bought Waze<\/em>. Retrieved Nov 16, 2016, from Forbes: http:\/\/www.forbes.com\/sites\/petercohan\/2013\/06\/11\/four-reasons-for-google-to-buy-waze\/#39f13cc81433<\/p>\n

[ii] Waze. (2016). About Us<\/em>. Retrieved Nov 16, 2016, from Waze : https:\/\/www.waze.com\/<\/p>\n

[iii] Empson, R. (2013, June 11). WTF is Waze and why did Google just pay a billion + for it?<\/em> Retrieved Nov 16, 2016, from TechChrunch: https:\/\/techcrunch.com\/2013\/06\/11\/behind-the-maps-whats-in-a-waze-and-why-did-google-just-pay-a-billion-for-it\/<\/p>\n

[iv] Waze. (2016). About Us<\/em>. Retrieved Nov 16, 2016, from Waze : https:\/\/www.waze.com\/<\/p>\n

[v] Bradley, R. (2015, June 2). Waze and the Traffic Panopticon<\/em>. Retrieved Nov 16, 2016, from The New Yorker: http:\/\/www.newyorker.com\/business\/currency\/waze-and-the-traffic-panopticon<\/p>\n

[vi] Olson, P. (2013, June 13). What Waze adds to Google: A View from Waze’s CEO<\/em>. Retrieved Nov 16, 2016, from Forbes: http:\/\/www.forbes.com\/sites\/parmyolson\/2013\/06\/13\/what-waze-adds-to-google-a-view-from-wazes-ceo\/#4bfd30fd59e2<\/p>\n

[vii] Empson, R. (2013, June 11). WTF is Waze and why did Google just pay a billion + for it?<\/em> Retrieved Nov 16, 2016, from TechChrunch: https:\/\/techcrunch.com\/2013\/06\/11\/behind-the-maps-whats-in-a-waze-and-why-did-google-just-pay-a-billion-for-it\/<\/p>\n

[viii] Bradley, R. (2015, June 2). Waze and the Traffic Panopticon<\/em>. Retrieved Nov 16, 2016, from The New Yorker: http:\/\/www.newyorker.com\/business\/currency\/waze-and-the-traffic-panopticon<\/p>\n

[ix] Ungerleider, N. (2015, April 15). Waze is driving into city hall<\/em>. Retrieved Nov 16, 2016, from Fast Company: https:\/\/www.fastcompany.com\/3045080\/waze-is-driving-into-city-hall<\/p>\n

[x] Bradley, R. (2015, June 2). Waze and the Traffic Panopticon<\/em>. Retrieved Nov 16, 2016, from The New Yorker: http:\/\/www.newyorker.com\/business\/currency\/waze-and-the-traffic-panopticon<\/p>\n

[xi] Ungerleider, N. (2015, April 15). Waze is driving into city hall<\/em>. Retrieved Nov 16, 2016, from Fast Company: https:\/\/www.fastcompany.com\/3045080\/waze-is-driving-into-city-hall<\/p>\n

Photo Credit: Newsguppy.com (2016, March 30). Retrieved Nov 16, 2016, from News Guppy: http:\/\/newsguppy.com\/waze-app-launches-new-feature-to-avoid-fines-for-speeding<\/p>\n","protected":false},"excerpt":{"rendered":"

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