Google Maps (GOOG) Maybe Facing Stiff Competition in the Near Future
Back in October, when Google (Nasdaq: GOOG) announced it had plans to begin charging its heavy commercial users for using its Google Maps service, management may not have forecasted the correct impact it would have on the company's market share.
Although the new charges are only expected to impact 0.35 percent of total Google Map users, online profile blog posts Nestoria and Fubra have already announced their plans to switch from Google Maps to OpenStreetMap, a similar service to Google Maps, reports Forbes. The sites indicated that Google is looking to charge them more than they are currently making in advertising revenue.
Google Maps has been a dominate player in its industry as it's the most used application programming interface, well ahead of Twitter and YouTube, but the competition is in the market is present. Forbes highlights Yahoo (Nasdaq: YHOO), Microsoft (Nasdaq: MSFT), and AOL (NYSE: AOL) have already began supporting OpenStreetMap by designing interfaces or permitting the use of satellite images.
Besides for OpenStreetMap, Google may also be looking out for Apple (Nasdaq: AAPL) to release a map program which is similar to Google Maps. Apple purchased C3 Technologies back in October and has yet to do anything with. This acquisition marked the third mapping technology acquisition that Apple has made since 2009. When Apple customers look for a local store on their website, Google Maps is used to help the customer find directions so show the exact location. The Google Maps app is also standard on all new iPhones. Knowing Apple, their management team is waiting to develop the prefect program before launching it to the public. Forbes notes that some rumors have even stretched as far as offering 3D maps.
In the long-run, Google may lose market share to competitors. In the near-term, Google is looking to charge not even a half of one percent of Google Maps entire user base. This most likely will not be a major profit gainer for the company nor should it hurt the company's Google Map user bases.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
Although the new charges are only expected to impact 0.35 percent of total Google Map users, online profile blog posts Nestoria and Fubra have already announced their plans to switch from Google Maps to OpenStreetMap, a similar service to Google Maps, reports Forbes. The sites indicated that Google is looking to charge them more than they are currently making in advertising revenue.
Google Maps has been a dominate player in its industry as it's the most used application programming interface, well ahead of Twitter and YouTube, but the competition is in the market is present. Forbes highlights Yahoo (Nasdaq: YHOO), Microsoft (Nasdaq: MSFT), and AOL (NYSE: AOL) have already began supporting OpenStreetMap by designing interfaces or permitting the use of satellite images.
Besides for OpenStreetMap, Google may also be looking out for Apple (Nasdaq: AAPL) to release a map program which is similar to Google Maps. Apple purchased C3 Technologies back in October and has yet to do anything with. This acquisition marked the third mapping technology acquisition that Apple has made since 2009. When Apple customers look for a local store on their website, Google Maps is used to help the customer find directions so show the exact location. The Google Maps app is also standard on all new iPhones. Knowing Apple, their management team is waiting to develop the prefect program before launching it to the public. Forbes notes that some rumors have even stretched as far as offering 3D maps.
In the long-run, Google may lose market share to competitors. In the near-term, Google is looking to charge not even a half of one percent of Google Maps entire user base. This most likely will not be a major profit gainer for the company nor should it hurt the company's Google Map user bases.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
You May Also Be Interested In
- Facebook (FB) Could Boost Revs with This Potential Acquisition...
- EMC (EMC): Still Underestimated Despite All the Potential - Barron's
- Cramer Gets Tough on J.C. Penney (JCP), Says Stronger Effort Needed
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
TwitterSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
