Speculation: why is going to buy Facebook social map Waze?

Beijing time on May 13, according to foreign media reports, Facebook are in talks with Israeli start-up company Waze it intends to for $1 billion acquisition of the latter.

Waze was founded in 2009, its investors including Horizons Ventures, Hong Kong and kleiner perkins. Waze has developed a suitable for smartphone social maps. Last July, Waze number of users reached 20 million.

Waze by the user community to provide real-time traffic information. If a user login Waze service to drive at the same time, when he met traffic accident, Waze map shown on the back of his car there is a red line, issued a warning to other users. Users can also take photos of the scene of the accident that other users can understand why traffic jams, they can also warned other users, to avoid traffic accident road segments.

Facebook why want to buy such a map application company? There are three in the industry is replied:

first in the industry:

Facebook acquisition Waze reason is that every important technical company want to have their own map service. Microsoft, Google and apple are so, Facebook also cannot avoid custom.

Waze is a crowdsourcing map service. Users log in to the Waze platform, when they drive to everywhere, they walked through the route will be drawing down. They can through the GPS real-time traffic information, including the driving speed on the roads.

if the service users can reach 1 billion, then its map will be very accurate. If Facebook can provide a local search capabilities, so outside the search user interface to add a map the user interface is very necessary, they can use their own traffic information platform for the map has become more accurate and more valuable.

all technology companies want to have their own map service is another example: alibaba in the gold software last week.

map will be found that local and local business an important interface, Waze has a itself has good map service, Facebook can make it better.

conclusion: Waze can improve the local search service of Facebook, the latter to Facebook and profitability for the future development of mobile applications is important.

second place in the industry:

Facebook acquire Waze in order to make Facebook Home to be more perfect, let users don’t have to jump to the Google maps service.

there is a layer of the reason may be that Google may feel the Facebook Home threat to it, so it intends to put forward to Facebook Home cannot use Google map service, which in turn caused pressure to Facebook, so it needs to have his own map service.

it is clear that the map/local service social is the future development direction of map.

conclusion: Facebook believes that the map is that it must have a core of mobile applications, Waze than Google maps can help it to build a better and more attractive map of social services.

the third industry:

Facebook acquisition Waze the simplest and the most important reason is that Waze is a great mobile application, it is Facebook is now in urgent need of mobile assets.

Facebook need some itself is attractive enough and can not be replaced by the application of apple or samsung.

the second reason is Waze can let you know where is your friends, this information is of great value; At the same time, it does not need to users and what to do. It combined with Facebook’s social graph to bring out the best in each other.

the last reason is acquisition Waze can help Facebook to achieve its vision News flow (News Feed), the latter can know all about you, and you can use the information to determine what you need in some important moment and want to see anything. Know everything about you including know you now in where.

conclusion: buy Waze can increase Facebook mobile usage, can even let its core product news flow more powerful.