- What is Waze, and how does Waze work?
- How does Waze make money?
- Waze Carpool
- Waze’s profit and revenue
- What is the Waze business and revenue model?
- Waze’s funding and valuation
How does Waze make money if it’s free? Here is a full, in-depth, breakdown of their two (2) revenue streams and the different products and services they offer, as well as the Waze business model, their year-over-year revenue, and how Waze works.
What is Waze, and how does Waze work?
Founded in 2006 by Ehud Shabtai, Waze later went on to become acquired by Google for $1.3 billion on June 11, 2013. Since then, Waze has over 140 million monthly active users and, according to Statista, was the second most popular map app by downloads behind Google Maps in 2020.
How Waze works is: Users first download the app through the App Store or Google Play. Once downloaded and signed up for an account, users can use the GPS app to receive real-time alerts to navigate traffic, accidents, finding the best routes, and more.
Some of Waze’s competitors include Apple Maps, Google Maps, Here WeGo, and other GPS navigation apps.
How does Waze make money?
According to Waze’s about page, Waze has more than 140 million monthly active users navigating with their GPS. So how does Waze make money off of all those users?
Below is a breakdown of how much money Waze makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 2 ways of how Waze makes money (in 2021):
Waze has a revenue model that makes money in two (2) ways – advertising and Waze carpool.
Waze partners with local businesses all the way to major corporations to advertise with. Stating there are more than 25K+ businesses globally advertising with Waze Ads to reach their customers locally, according to Waze.
Waze’s ad budget calculator gives an estimate of how much traffic a business can expect based on their budget. For example, Waze says $60 per month will reach an estimated 30,000 Waze users, while $30,000 per month has a reach of 1.5 million users.
Waze Advertising Cost:
- minimum $2 per day or $60 per month
Note: 25K+ businesses globally advertise with Waze.
#2. Waze Carpool
In October of 2018, Waze introduced Waze Carpool which allows Waze users to get paid by becoming carpool drivers for other Wazers who need a ride.
As of now, it’s said Waze does not make money on this product and all revenue charged to the passengers goes straight to the carpool drivers. But we will be sure to update this section if and when Waze decides to take a revenue share of the earnings.
Waze Carpool Cost:
- $0.54 per mile
Note: The rider’s cost per mile is tied to what the IRS’ car depreciation amount is for that given year.
Waze’s profit and revenue
Google, the parent company of Waze, has not released any official revenue earnings for Waze.
Note: Because Alphabet Inc., the parent company of Waze, is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Alphabet’s publicly released financial reports, including annual reports, through Alphabet’s investor section on their website.
What is the Waze business and revenue model?
Waze makes money through a few revenue models that they combine within their company, they are:
- Advertising based business model
- B2B2C (partnerships) business model
Waze’s funding and valuation
According to Waze’s Crunchbase profile, Waze has raised $67 million over 3 rounds.
Waze was acquired by Google on June 11, 2013, for $1.3 billion.