Waze Mobile Ltd, (; Hebrew: ווייז מובייל בע״מ) doing business as Waze (ווייז), formerly FreeMap Israel, is a subsidiary company of Google that provides satellite navigation software on smartphones and other computers that support the Global Positioning System (GPS). In addition to turn-by-turn navigation, it incorporates user-submitted travel times and route details while downloading location-dependent information over a cellular network. Waze describes its application as a community-driven initiative that is free to download and use. The software was originally developed in Israel by Waze Mobile, a company founded by Israeli entrepreneurs Ehud Shabtai, Amir Shinar, and Uri Levine, who are also veterans of Unit 8200. Funding for the initial project was provided by two Israeli venture capital firms, Magma and Vertex Ventures Israel, as well as by an early-stage American venture capital firm, Bluerun Ventures. In June 2013, Waze Mobile was acquired by Google for US$1.3 billion. The application generates revenue through hyperlocal advertising to an estimated 130 million users.
History
Development In 2006, Israeli programmer Ehud Shabtai founded a community project known as FreeMap Israel, which aimed to create (with the crowd-sourcing assistance of community users) a free digital mapping database of Israel compiled in the Hebrew language with ensured free content, updates, and distribution. In 2008, Shabtai formed a company called Waze to commercialize the initial project; in 2009, it was renamed to Waze Mobile Ltd. and gave birth to its tagline "Outsmarting Traffic, Together." coined by the company's first in-house communications hire, Michal Habdank-Kolaczkowski. In 2010, the company raised US$25 million in the second round of funding; an additional $30 million was raised in financing in the following year. The application was updated in 2011 to display real-time, community-curated points of interest, including local events such as street fairs and protests. By December 2011, Waze had employed 80 people, 70 of whom were based in Ra'anana, Israel, with the remaining 10 based in Palo Alto, United States. In November 2012, the company began to monetize its application, offering resellers and advertisers a web interface to advertise based on location, where a small icon appears when a phone is at a particular location, prompting the user to engage. It also offers television news stations a web interface to broadcast current traffic reports and alerts directly from the Waze application; the service had been in use by 25 American television news stations by June 2013. It has also been used in Rio de Janeiro, Brazil, inside Rio's Operations Center since July 24, 2013, as well as in the American states of New York and New Jersey since 2012. In 2013, the GSM Association, a trade association of mobile network operators, gave Waze the Best Overall Mobile App award at the association's Mobile World Congress exhibition.
Google acquisition In June 2013, Waze was acquired by Google for $1.3 billion. Waze's then-100 employees received about $1.2 million on average: the largest payout to employees in Israeli high tech. As part of the acquisition, the Waze development team continued to operate in Israel as a separate entity from Google. At the time of acquisition, there were nearly 50 million Waze users. In June 2013, the Federal Trade Commission (FTC) of the United States began a consideration of whether Google's acquisition of Waze was potentially violating competition law; Waze was among a very small group of competitors in the mobile mapping sector against Google Maps. The FTC later decided that it would not challenge the deal; the Office of Fair Trading of the United Kingdom and the Israel Antitrust Authority also launched an investigation, in which the acquisition was ultimately unchallenged. However, in 2020, the FTC announced that it would be re-examining Google's 2013 acquisition of Waze.
Overview Waze collects map data, travel times, and traffic information from users and transmits it to the Waze server, at no cost to Waze. Waze users ("Wazers") can report accidents, traffic jams, speed and police traps, and, from the online map editor, can update roads, landmarks, house numbers, etc. Waze sends anonymous information, including users' speed and location, back to its database to improve the service as a whole. Based on the information collected, Waze is then in a position to provide routing and real-time traffic updates. Waze can also identify the cheapest fuel station near a user or along their route, provided Waze has enabled fuel prices for that country. The fuel prices are reported and updated by users and/or other third parties in proximity to a station. This feature currently only supports gasoline and diesel pricing. Waze offers turn-by-turn voice navigation, real-time traffic, and other location-specific alerts. Waze encourages users to report traffic or road hazards through incentives such as acquiring points for their profiles.
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