How does Waze make money? Revenue Streams & Business Model

Waze is a widely used navigation app and is known for real-time traffic updates. As it is free for users, then How does Waze make money? Waze has developed various strategies that generate revenue. 

The main source of generating revenue for Waze is the Advertisement, which can be done through many ways including, Branded Pins, Zero Speed Takeovers, Search Ads, and many others. Moreover, revenue can also be generated by Waze Carpooling, Sponsered and Partnerships Drives, Data Licensing, and many other ways.

In this article, I will provide all the methods that will help you guide that How does Waze make money. 

How does Waze make money? Multiple Streams of Revenue

• Advertising
• Waze Carpool
• Sponsored and Partnerships Drivers
• Integration with Google services

1. Advertising: Waze Ads

Waze primary source of generating a handsome revenue is from advertising. Waze Ads is a location-based advertising platform. It offers businesses the opportunity to promote their services to drivers in real-time.

For example, you as a driver you can see the different cafes, restaurants, gas stations, etc along your way to your destination. So you and they can approach you for an advertisement by tracking you in real-time. In this way through advertisement features, Waze can generate good revenue.

Moreover, depending on the time and location the drivers can also avail of different offers and discounts on various products from them. 

Revenue can be generated through several types of ads:

Zero-Speed Takeovers:

• These ads are displayed by Waze when the driver visits or stops near these restaurants or stores at least for 30 seconds.
• When the driver passes by a billboard, the ad pops up on the driver’s mobile or tablet.
• Moreover, the drivers can reach these places by clicking on the option “Drive There”
• Some other buttons are also displayed there including, “Remind me”, “Call now”, “Favorite Brand” etc. 

Branded Pins:

• The branded pins appear when the driver reaches these brands or stores, which is an opportunity to attract nearby users. 
• On the app, these branded pins have an icon that specifies the location of stores, restaurants, etc. 
• When the user reaches these locations, different pop-ups of advertised businesses will show on the screen.
• Drivers can click on these pins, as doing so will provide information related to stores and brands.
• Users can also click on the “Save for Later” option if they want to visit these locations later. 

Promoted search Result:

• When the users search for a specific business type or category, the results will be listed and appear at the top of searches on the Waze app. 
• So these displayed business pays to ensure their locations are displayed prominently. 

Arrow Ads:

• The arrow ads help drivers guide them to a nearby business location by showing a directional arrow.
• This is helpful for restaurants, gas stations, and other roadside services. 

Steps in the Advertising Process:

1. Different businesses create an account on the Waze Ads.
2. Then they choose the type of ad that they want to display.
3. Ads are set according to locations, offers, and brands.
4. Then Waze shows these ads to drivers depending upon their location and driving.
5. These businesses then also track the performance of their ads through Waze’s analytics. 

2. Waze Carpool:

Waze Carpool is a feature of the Waze app. It allows drivers and riders to share and merge rides to manage the cost of commuting. Waze Carpool is designed which helps to reduce traffic mess and pollution emissions.

How it works?

• Users set their preferred locations and dates, and then Waze matches the driver and user routes. 
• As riders pay fees to the drivers, Waze cuts a percentage of this fee as a commission.
• As more and more users use the carpool service, the commission will become a significant revenue. 

Steps for Users:

• Download the Waze and sign up for Waze Carpool.
• The drivers and riders are matched according to location and schedule.
• Riders pay fees to the drivers through the app, and Waze takes a commission of this fee.

3. Sponsored and Partnerships Drivers:

Waze collaborates with many companies to create well driving experience for users. For example, Waze has partnered with brands to provide sponsored voices for turn-by-turn navigation. These partnerships are a source of revenue, in which companies pay Waze to feature their branded content

Example of Sponsored Drivers:

• Different entertainment companies sponsor the voices of famous actors or characters for navigation.
• Many music events or festivals partner with Waze to offer special tips or routes. 

4. Integration with Google services:

As Waze is owned by Google but it also integrates with Google services. This leads to potential revenue way. Google Maps is a direct competitor of Waze, but the users and database of Waze complement the overall advertising system of Google.

• Businesses advertising on Google can also extend this advertising to Waze.
• It creates unified advertising strategies. 
• Waze may link with Google Cloud for its operations.
• Any new addition to cloud services could open further opportunities. 

FAQs:

Q. Does Waze make a profit?

Yes, Waze makes a profit, as it makes money through location-based and other advertisements. 

Q. How much money did Google pay for Waze?

Google’s pay money for Waze is about $1.3 billion. More than 100 employees of Waze earned about an average of $1.2 million.

Q. How is Waze  free?

You can download Waze free from the Google Play Store or Apple Store. You can make money through advertising support from the Waze.