Value proposition and Revenue model of Waze

Ccochayhua Barrientos Jorge, Jarpa Ojeda Sebastian & Ku Chang Edwin.

June 2020.

San Martin de Porres University.

Faculty of Engineering and Architecture.
Ecommerce
 Content ii

Value proposition of waze .............................................................................................................. 1

Chapter 2 Revenue Model ............................................................................................................. 1
How does WAZE make money?................................................................................................. 1
Referencias ...................................................................................................................................... 3
 1

Value proposition of waze

Let you know

Report
when you’re Provides
accidents Shows you
speeding the best
your speed
route

Provide Shows you

comparison on estimated Gives
how much time of directions
time you save arrival
Save
Real-time favorite
interactive routes Notify
gps Choose Location It doesn't
other
the best is not have the
drivers
route accurate best routes

Does not
Finding the Knows the protect
cheapest Gas exact privacy
Station address
 Chapter 2 1

Revenue Model

How does WAZE make money?

Advertising
Waze uses in-app location-based advertising and offers services under a pay-per-
click (PPC) pricing model. Advertisers choose from the following ad formats specified by
Waze:

(source:Waze)
• Branded Pins – They are pins on Waze maps which are like store signs and show
up when the user is driving.

• Search ads – These are ads that are displayed on top of the search results when a
user searches for anything from within the app.

• Zero-Speed Takeover – These are digital billboard ads that pop up in case a driver
stops for at least 3 seconds.

• Waze displays them on the app-interface and also updates them in real-time
according to the user’s location so as to provide ads related to the shops that are
the closest to them.

• According to Waze, companies can sign up for as little as $2 per day for brands
with less than 10 locations and it goes all the way up to a minimum of $100 per
day for brands with more than 10 locations.

(Sivakumar, 2020)
Waze Carpooling 2

Waze introduced carpooling service in 2018 and unlike ride-sharing apps that connect
professional/part-time drivers with riders, Waze Carpool encourages the regular day
drivers to do carpooling.

As of writing, Waze Carpool is available in the US, Mexico, Brazil, and Israel. Riders
can access the carpooling feature from within the regular Waze app. Drivers must
download the stand-alone “Waze Carpool” app that is available on iOS and Android.

Waze allows two carpools a day for every driver and riders are charged a maximum of 54
cents-per-mile. There are other factors that determine the cost of each ride. Here is the
price breakdown for riders of Waze carpool:

• Base price – Waze calculates the base price taking into account the route and the
number of riders in the carpool.
• Number of riders – Driver can accept as many riders as he/she wishes. Prices may
vary on riders’ joining or leaving the carpool. However, it won’t exceed the
original price shown at the time of ride confirmation.
• Service fee –As of writing, Waze has currently waived off service fees.
• Promotions/Coupons –Riders are entitled to promotions that help reduce the price
they pay for the carpool.
(Sivakumar, 2020)

Data Deals

Waze collects a lot of location-based information to further improve upon its services and
serve the important information and ads in real-time.
(Sivakumar, 2020)
 Referencias 3

Sivakumar, B. (14 de 04 de 2020). feedough. Obtenido de feedough: www.feedough.com