June 12, 2013: After weeks of rumors, Google finally won the Waze Dot Race, paying an estimated $1B for the Israeli-based traffic start-up. Since Google already has traffic, maps and a team, the move has been described as a “blocking” move; a move to keep Waze out of the hands of Google’s rivals who might want to use it to build competitive service in the mapping, navigation and traffic markets.
If it is a blocking move (and I think that’s a good partial explanation. For more talking head stuff, see here), it begs the question of what precisely are they blocking…what do they want to tie up, away from competitors, that is worth that much money?
What they’re not blocking: The Waze app.
Continue reading Blocking Strategies: Why Google Bought Waze