OK Waze. It had to happen.
On March 29, Mapquest added Voice Prompted turn by turn navigation to their FREE app.
US smartphone users are trying both applications and making choices.
Just like Yahoo and Google, eventually one choice will be dominant.
Not much yet on comparative analysis
So here’s my summary. Followed by some thoughts on competitive reaction to this threat.
See bottom for my full compare of Waze and Mapquest.
Waze vs. Mapquest
Waze - Current weakness
Low Name recognition and financial backing may be limited
Inaccurate maps, especially in major metropolitan areas
Poor routings due to poor maps
MapQuest - Current Strengths
High Name recognition and financial backing (AOL) is strong
Maps are highly accurate, except for construction zones
Waze - Current Strengths
Application is stable
Area Managers - ability to update maps for changing conditions and most are highly committed
User feedback on map errors go to area managers
Mapquest - Current weakness
Does not allow user reporting or capture user speeds to show road delays
Some users report app crashes per iTunes
Some users report app give bad directions / maps out of date on iTunes
Analysis and Competitive Response
Analysis: - The market for free GPS is new and market penetration is minimal currently. Waze application is stable and has been used productively for 2 years in Israel. Mapquest application is new and may be initially buggy. Mapquest has strong name recognition which should lead to early use by Iphone / blackberry users. Waze has little name recognition outside of early adopters and the technical press. Waze has a strong potential advantage with its ability to leverage real-time user data and feedback. Also, the committed Waze area managers provide another potential strength, if they can be leveraged quickly.
However, the critical differentiator is accuracy of the underlying maps. Mapquest US maps are significantly more accurate than Waze US maps. So, Mapquest is more likely to provide acceptable to good routings, while Waze will give more poor to impossible routings due to inaccurate maps. Waze has time to close this gap but will need to move quickly to maintain competitive advantage.
Competitive Response:
Waze must rapidly improve the accuracy of their maps if they hope to compete in the US market and win over Mapquest. To do that Waze must think strategically about how to leverage their strengths and address their map accuracy gap. First, with limited resources, focus is critical.
The Pareto (80/20) principal must be paramount. 80% of any outcome is derived from 20% input.
Example 80% of sales dollars come from 20% of the product line.
Similarly, 80% Waze user’s travel time will occur on 20% of the Waze map.
Or, more directly, fix 20% of the Waze US map and the vast majority of Waze users map issues have been addressed. The rest of the effort is just ‘mopping up’ after the battle is over.
But, how do you identify the critical 20%?
Strategic Goal:
First, most potential Waze US users live in or near major cities.
Per the US Census - 80% of US population lives in Urban Areas vs. 20% in Rural Areas.
http://www.fhwa.dot.gov/planning/census/cps2k.htm
Next, recognize that 25 urban areas hold 50% of US urban population. Focus resources in these 25 urban areas.
65 urban areas comprise 70% of US urban population.
http://en.wikipedia.org/wiki/Table_of_United_States_Metropolitan_Statistical_Areas
See attached spreadsheet. http://www.tcinternet.net/users/rtwolfe/US_Urban_Pop.xls
But, just focusing on these critical cities in not enough.
Focus on the vital roads that provide the largest benefits.
In “urban areas, the arterial system is divided into principal and minor arterials. The urban principal arterial system is the most important group; it includes Interstate highways, other freeways and expressways, and other principal arterials. The urban principal arterial system serves major metropolitan centers, corridors with the highest traffic volume, and those with the longest trip lengths. It carries most trips entering and leaving urban areas, and it provides continuity for all rural arterials that intercept urban boundaries. In 1997, the urban principal arterial system accounted for 1.9 percent of total miles in the United States. However, this network carried 57.8 percent of urban traffic and 35.5 percent of total travel in the United States.”
http://www.ncdot.org/planning/development/TIP/func/funcOverview.htm
Freeways in urban areas carry about 60% of all urban traffic.
Accurate routes on Principle arterial roads (aka Freeways/Toll ways), provides the majority of routes needed. Add the collector roads and nearly all routes are covered.
Tactics:
Waze US maps are based on US Tiger maps. However, these maps are flawed and need manual corrections by Area Managers or Waze personnel to provide needed accuracy, before proper routing can occur.
Waze Personnel:
Waze personnel, with support of specialized IT tools, might be able to mass update major freeways quickly to provide accurate routing. Perhaps specialized programs that look at recent GPS points and recent routes could use statistical models to derive the accurate flow patterns and define the road layouts. Perhaps specialized programs that analyze aerial photos and positioning of cars and trucks could set the flow patterns and road layouts. Lastly, specialized programs that allow authorized personnel to use devices like light pens or touch screens to ‘draw and configure’ freeways and ramps graphically verses manually setting each road segment or ramp.
Risk: New and Unique Programming takes valuable time and might not be able to provide the functionality needed quickly.
Area Managers:
Area Managers could correct the freeway inaccuracies, however there are three issues. First, how to get area managers to focus on critical freeways first. Second, how can Waze increase the productivity of these volunteer area managers so they can better use their limited time to complete the task quickly. Third, some area managers do not have the needed skill levels to complete the task. Specific Waze staff should be assigned to key cities to motivate the area managers and ensure freeways are quickly updated.
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Freeway Focus - Establish regular communication with area managers in critical cities. Use of direct email, pings or asking non-area managers with high point totals to become area managers can improve alignment. Help establish plans and priority lists. Work cooperatively as a team to fix critical freeways.
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Increase productivity - Establish regular focus group meetings with top area managers to get their input on how best to improve productivity and accuracy. Let them vote and prioritize the suggestions. Weight the votes to reflect the point totals of more experienced area managers.
Possible suggestions to improve productivity. More should be gathered from focused communication with experienced area managers
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Suggestion: Update Map - Locked Indicator for road segments
http://www.waze.com/forum/viewtopic.php?f=16&t=3368 -
Suggestion: Update Map - Practice Route function
http://www.waze.com/forum/viewtopic.php?f=16&t=3342 -
Suggestion: Simplify the defaults for junctions
http://www.waze.com/forum/viewtopic.php?f=16&t=3463
- Increased skills - provide more on line training, and especially encourage area managers in key cities to review the training. Also attempt to get other area managers to mentor the manager that needs help.
Risk: Area managers are volunteers so there are limits on that amount of effort that they may be willing to contribute. However, pareto analysis may show that 80% of the updates are provided by 20% of the area managers. Perhaps appropriate incentives could be provided to area managers who complete their freeway work by a set timeline. Inexpensive rewards such as local celebration parties, hats, gifts etc could be used to encourage performance. Monetary rewards could also be considered, perhaps as a lottery.
Full Compare
Waze Current weakness
Low Name recognition and financial backing
Inaccurate maps, especially in major metropolitan areas
Poor routings due to poor maps
Does not run on Blackberry
Map Quest Current Strengths
High Name recognition and financial backing (AOL)
Maps are highly accurate, except for construction zones
Create a trip by adding multiple destinations to your route.
MapQuest Place Carousel displays hotels, movie theatres, gas stations, and more with a single tap.
walking directions (Pedestrian mode)
Runs on blackberry and Iphone
Three energy saving modes
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Waze Current Strengths
Application is stable
Area Managers - ability to update maps for changing conditions and most are highly committed
User feedback on map errors go to area managers
Some Incident reporting - Speed traps, Accidents, Road Construction
Runs on Android and Windows Mobile
Global application
Mapquest Current weakness
Does not allow user reporting or capture user speeds to show road delays
Some users report app crashes per iTunes
Some users report app give bad directions / maps out of date on iTunes
Map always pointing North, so it doesn’t rotate the map as you drive along.
Does not run on Android and Windows Mobile
US only application - not global yet
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Waze Future Strengths
Real-time reporting of road conditions if user base is large enough
Maps can become highly accurate, including road construction
Mapquest Future Strengths
??? Not sure what they might add? Area Managers? Ping?
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Equal - Waze and Mapquest
Low user base
Free GPS navigation with voice prompts
Route calculation. Start driving without ever touching the iPhone again.
Automatic Re-routing if get off course
Save routes
Address Search
Name Search