Waze is one of the foremost satellite navigation applications, used by over 130 million people annually.
As a subsidiary of Google, Waze is on the frontline of commercial navigation, helping transport drivers almost anywhere in the world.
While many people believe Waze is unique for its variety of features like crowdsourcing information, celebrity voice guidance, map modification, and its Connected Citizens Program (CCP), what is most distinct about the company is how it earns money.
If you’re asking yourself, “how does Waze make money?” keep reading to find out.
Four Ways Waze Earns Revenue
1. Advertising
The primary income source for Waze is advertising. Unlike traditional forms of advertising, which target a general audience through indirect means, Waze uses digital ads.
Through the use of pin ads, businesses pay Waze to display their store along a driving path.
Similarly, companies can pay through a cost-per-impression model (CPI) to show a listing for their store when someone searches for a particular type of business through the app.
Many companies also pay Waze to display takeover lay when a car stops. Lastly, arrow ads are similar to pin ads, except they show only when someone isn’t driving.
2. Waze Carpool
Most people don’t realize this, but Waze actually has a rideshare system called Waze Carpool.
Unlike other rideshare services, which take a percentage out of each ride, drivers with Waze Carpool keep the entire commission of the ride. Instead, drivers pay Waze a service fee out of their total payment.
3. Referrals and Partnerships
If you’ve used Waze before, you probably are familiar with the fact that the UI changes if you are playing music through Spotify, Pandora, and YouTube Music.
These three companies, along with others, are partnered with Waze and make use of an API to display their functions along with Waze’s directions.
Therefore, whenever a Waze user downloads or purchases from a partner app, Waze earns revenue.
As Waze grows in popularity, they earn a greater reputation and better standing in making deals.
In turn, one of the greatest potentials for how does Waze make money in the future is through referrals.
4. Waze Beacons
Nothing is more annoying than losing service while driving through a tunnel.
Fortunately, Waze sells battery-powered devices that transmit GPS signals and data to drivers while in tunnels.
Waze collaborates with many city, state, province, and national governments to share and analyze traffic information.
In turn, those governments purchase Waze Beacons, allowing traffic information to be displayed and recorded in tunnels.
The Future of Waze
There is currently no shortage of drivers on the road, especially as gas prices have decreased.
However, many believe that automobiles will be a thing of the past, except for transporting goods shipments.
Since the primary income source for Waze is hyperlocal advertising, it gives Waze ample opportunities to adapt and develop its income strategy for the future.
That being said, there’s much room for speculation on how does Waze make money ten years down the road.
We will have to see how they go about doing that then.
