Who owns Waze and how does the app make money?

Chances are, if you don’t use Google Maps or Apple Maps for road navigation, you use Waze instead. The mobile application originated in Israel in 2006 under the name FreeMap Israel and has since expanded across the world. For those who don’t know, Waze offers crowdsourced traffic and road condition reporting to help make your driving – whether it’s a daily commute or a long-distance trip – as quick and hassle-free as possible.

But who exactly owns this popular app? Well, in 2013, its developer (Waze Mobile) was bought by Google. The tech giant said it planned to share features between Waze and Google Maps, and it has been keeping that promise ever since. Waze is free and generates revenue primarily through ads. While it may look like a simple navigation app, its ownership and business model are more complex than its interface suggests. It’s this combination of free access and support from Google that has helped maintain its popularity, as well as its financial success.

Waze caught Google’s attention with features like traffic data from multiple sources, live traffic reports, map editing capabilities, and a highly engaged community. Google bought the company for $966 million in cash, and at the time some observers said the acquisition was intended solely to keep Waze out of the hands of its competitors. There have also been suggestions that Waze will integrate its best features into Google Maps, or even shut down the old app altogether.

Google was very open about its plans at the time of the buyout, saying the Waze team would “operate separately for now” and would integrate Google Search into Waze while adding Waze traffic features to Google Maps. Over the years, Google has also taken a number of popular Waze features (including speed camera alerts and accident reporting) and integrated them into Google Maps, while also bringing some incredibly useful Google Maps features to Waze.

So far, Waze has avoided subscription fees and offers its app for free. Its primary source of revenue is advertising, including promoted pins and search placements, as well as ads displayed prominently within the app. Such a setup allows drivers to use the service for free, while companies pay to reach them based on where they are and where they are going.

It might seem incongruous that Google would acquire a navigation app similar to Google Maps and continue to support it, instead of simply making the most 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 which one you choose will likely depend on your needs at the time.

Waze, for example, is known for its ability to quickly redirect drivers using real-time traffic reports, especially when roads are congested or an incident has occurred. The participatory model continuously collects road risk and traffic data from drivers, helping to keep routes and conditions as up to date as possible. The app is particularly suitable for everyday users traveling to and from the same destinations, such as work, and who want to know the optimal route based on current conditions. This also works well in urban areas, where more Waze users on the move at any given time can share information as part of the crowdsourcing process.

Google Maps, on the other hand, works well for general navigation, planning trips, finding places to stop and rest, and finding the best cycling and walking routes. It also has Street View, which allows you to view an area as if you were there on the ground. Google Maps is most useful when you want to do things like save places or create an entire trip. That’s why some drivers have both apps – or an alternative to Google Maps – installed on their phone, allowing them to choose between the best one depending on their situation.