Business Model of Waze BY HEM MY ABD JALAL (2011138163)
Business Model • As ‘architectures’ for the product, service, and information flow; A description of the potential benefits for the various business actors; and A description of the sources of revenue. Timmers (1998) • Includes the roles and relationships among a firm's customers, allies, and suppliers, the major flows of product, information, and money, and the major benefits to the participants. Weill and Vitale (2001) • As ‘methods’ by which firms do business, by which a company can sustain itself. Rappa (2003), and Turban et al (2002).
8 Key Elements of Business Model market value proposition revenue model opportunity competitive competitive market strategy environment advantage organizational management development team
Business Model of Waze
What is Waze? • community-based traffic and navigation app • share real-time traffic and road info (saving everyone time and gas money on their daily journey). • WAZE. OUTSMARTING TRAFFIC, TOGETHER.
What is Waze?
What is Waze? • Waze started from roots of open-source projects named FreeMap Israel, open- source project which mapped Israel using their users mobile- similar to today Waze process. • Waze Ltd. was founded in 2008 in Israel by Uri Levine, software engineer Ehud Shabtai, and Amir Shinar. The company was originally called LinQmap. • In December 2011 Waze employed 80 people, 70 at Ra'anana, Israel and 10 in Palo Alto, California.
Value Proposition (VP)
Value Proposition (VP) Problem s
Value Proposition (VP) Customers / Users
Revenue Models (RM)
Revenue Models (RM) Benefactors Funding Series A, BlueRun Ventures $12 million 3/2008 Magma Venture Partners Vertex Venture Capital Series B, Magma Venture Partners $25 million 12/2010 Vertex Venture Capital BlueRun Ventures Qualcomm Ventures Series C, Kleiner Perkins Caufield & $30 million 10/2011 Byers Horizon Ventures TOTAL $67 million
Revenue Models (RM) “The goal is to get the app in enough people’s hands that there is a steady flow of new road data to add to the Waze database. Then, the company plans to license that raw data to other companies to do with as they please and, in the process, grab as much of what it thinks is a $4 billion market as it can. But to users, such goals may well be unimportant, so long as they can continue to get the very latest information about what’s ahead of them as they drive“. “Google acquired Waze - Di-Ann Eisnor (Waze VP Community Geographer), 2009. on June 2013 for $1.1 billion”
Market Opportunity (MO) Location Based Advertising In-App Advertising / Coupon & Deals Mobile Marketing
Management Team (MT) Uri Levine • Ehud Shabtai Co-Founder & CTO Co-Founder & President • Amir Shinar Co-Founder & VP R+D • Anat Zach VP Finance • Noam Bardin CEO • John Malloy Board of Directors • Di-Ann Eisnor VP Community • Ehud Levy Geographer Board Member • Yael Elish • Jason Wong VP Product Board of Directors • Fej Shmuelevitz • Julie Mossler VP Community & Sr. Director, Communications Operations • Jordan Grossman • Samuel Keret Sr. Director, Sales VP Business Development