Waze Purchase Helps Google Inc (GOOG) Beat Apple Inc. (AAPL) in Location Data

Six months ago CEO Larry Page answered a question about the monetization of Google Maps.  He answered that Google Inc (NASDAQ:GOOG) Maps is “critical to search. To understand those queries, we have to understand where things are in the real world.” Despite not directly generating revenue, Google Maps is indirectly helping the core business. It is for these reasons that Apple Inc. (NASDAQ:AAPL) came out with the competing Apple Maps.

When Apple Inc. (NASDAQ:AAPL) Maps first came out it was a failure, and it sparked off a year in which Google Inc (NASDAQ:GOOG) stock went on a rip while Apple stock plummeted. Despite this Apple has been at work to improve Apple Inc. (NASDAQ:AAPL) Maps, and is in position to become Google’s main mapping competitor. This is because personal location data is going to be huge in the future. McKinsey projected in 2012 that “services enabled by personal location data can allow consumers to capture $600 billion in economic surplus.” Whichever map program best services users will play an integral part in facilitating this surplus and new business because of it.

With the purchase of Waze, Google Inc (NASDAQ:GOOG) is taking an active step towards coming out on top.  If they do, Google will benefit from all the revenue related to bringing together new business enabled by personal location data services.  Google saw the future of personal location data and spent $1.3 billion on Waze while its competitors are burning billions on random ventures.  In my view this solidifies them as a must have for long term investors buying into the next wave of technology.

The article Waze Purchase Helps Google Beat Apple in Location Data originally appeared on Fool.com.

Xuebing is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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