Google Maps Adds New Ride Hailing Apps: Possibility Of A New Revenue Stream ?
Alphabet Inc.’s subsidiary Google (NASDAQ:GOOG) recently announced that, with its most recent update to Google Maps, the company is adding to the app new ride hailing service providers across five countries. These providers are in addition to its global ride service partner Uber. Users of Google Maps will now be able to use the app to hail 99 Taxis in Brazil, Ola Cabs in India, and Gett in the UK, as well as Hailo in the UK and Spain, an mytaxi in Germany and Spain. Uber was integrated with Google Maps in 2014. We believe that, by extending this integration to other players who are Uber’s competitors in certain geographies, Google is looking to make its Maps app as a one-stop transportation solution for users. While Google is currently providing this service free to ride hailing companies, we believe this can open up another revenue stream for Google in future and increase user engagement with Google Maps.
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650 Million Ride Sharing Users Forecast By 2030
According to figures released by market research firm ABI, the number of people using ride sharing services is projected to grow to 650 million globally by 2030. A McKinsey report suggests that urban mobility is at a tipping point and as an increasing number of people enter the global middle class, the urban infrastructure will not be able to support the consequent increase in vehicles on the road. This will lead to alternative mobility solutions and the increasing prevalence of car sharing and ride hailing as over car ownership. We believe that, given the huge potential for growth in the ride sharing and online cab hailing industry, Google’s efforts to integrate ride hailing service providers in its Maps app should create a new revenue stream for the company in future. While this is currently limited to a few operators, Google can potentially provide details of all ride sharing options available and give users the ability to compare between different rides. The company can potentially charge service providers for a listing on its Maps app.
Google will also benefit by an increase in user engagement on its Maps app. Given the opportunity to book a ride directly through Google Maps, users could ideally use this as the first point of search for a broader range of their transportation needs. Ride sharing companies have launched their own apps and with users have the option of conducting their transactions directly through the provider. Google thus faces the threat of users bypassing its platform and going to the providers’ apps directly. In order to engage mobile users better, Google has to come up with innovative ways for users to use its platform more frequently. By integrating data of ride sharing companies into its app, Google is ensuring a better engagement of users on its platform and potentially attracting higher traffic. This should translate into greater revenues for the company.
By including ride sharing along with other modes of transport provided by Google Maps, such as public transport, directions, traffic, etc., Google is accommodating this trend towards mobile computing. The company should benefit from this integration in terms of higher revenues and better engagement of users on Google Maps.
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