Who Owns Waze And How Does The App Make Money?

Chances are, if you're not using Google Maps or Apple Maps for driving navigation, you're using Waze instead. The mobile app started life in Israel in 2006 as a project called FreeMap Israel and has since expanded across the globe. For those not in the know, Waze offers crowdsourced traffic and road-condition reporting to help make your drive — whether it's a daily commute or a long-distance road trip — as fast and hassle-free as possible.

But who exactly owns this popular app? Well, in 2013, its developer (Waze Mobile) was acquired by Google. The tech giant said that it planned to share features between Waze and Google Maps, and it's been following through on that promise ever since. Waze is free to use and generates income mainly through ads. While it may look like a straightforward navigation app, its ownership and business model are more involved than its interface suggests. It's this combination of free access and Google's backing that's helped to maintain its popularity — as well as its financial success.

Waze came to the attention of Google thanks to features like crowd-sourced traffic data, live road reporting, map-editing features, and a highly-engaged community. Google bought the company for $966 million in cash, and at the time, some observers said that the acquisition only came about to keep Waze out of competitors' hands. It was also suggested that Waze would fold its best features into Google Maps, possibly even shuttering the former app entirely. 

Google was very open about its plans at the time of the takeover, saying the Waze team would "operate separately for now," and that it would bring Google Search integration to Waze while adding Waze traffic features to Google Maps. Over the years, Google has also taken a number of popular Waze functions — speed trap alerts and crash reports among them — and incorporated them into Google Maps, while also bringing some incredibly useful Google Maps features to Waze.

Waze has avoided subscription fees up to now, offering its app for free instead. Its main source of income is advertising, including promoted pins and search placements, along with display ads shown prominently within the app. Such a setup allows drivers to use the service at no cost, while businesses pay to reach them based on where they are and where they're heading.

It may seem incongruous that Google would acquire a navigation app similar to Google Maps and continue to support it, instead of simply taking the best of its technology and talent before shutting it down. But maintaining both apps seems to be working for the tech giant. Each app actually has its own strengths, so the one you choose is likely to depend on your needs at the time.

Waze, for example, is known for its ability to quickly reroute drivers using real-time traffic reports, especially when roads are congested or an incident has occurred. The crowdsourced model continuously collects road hazard and traffic data from drivers, helping to keep routes and conditions as up to date as possible. The app is particularly suited to daily users traveling to and from the same destinations, such as work, who want to know the optimal route according to conditions at the time. It also works well in urban areas, where a greater number of Waze users on the road at any given time can share information as part of the crowdsourcing process.

Google Maps, on the other hand, works well for general navigation, trip planning, searching for places to stop and rest, and finding the best biking and walking routes. It also has Street View, which lets you view an area as if you were there on the ground. Google Maps is more useful when you want to do things like save places or build out a full trip. That's why some drivers have both apps — or a Google Maps alternative — installed on their phone, allowing them to choose between the best one depending on their situation.