Uber to invest $550 mn in maps to end dependence on Google Maps
01 Aug 2016
Uber, the ride hailing company that introduced mapping cars in the US last year and more recently in Mexico, now plans to extend the initiative to other countries soon, according to Brian McClendon, the former head of Google maps, who was hired by the ride-hailing company.
''Accurate maps are at the heart of our service and the backbone of our business,'' McClendon said in a blog post. He added that Uber would not exist if interactive digital maps had not been there first.
The new maps are so critical to the company that it will invest $500 million to remove its dependence on Google Maps used on the Uber app in most parts of the world, and pave the way for its own driver-less cars, Financial Times reported yesterday, quoting a person familiar with the matter.
According to the report, after it raised $3.5 billion recently, the company plans to invest in new research as it expands into new markets rather than use standard, available technologies.
Commentators point out that Google was earlier an investor in the ride-hailing company but Uber had pursued development in technologies such as self-driving cars quite independently from the internet giant.
Meanwhile, Bloomberg reported that according to Uber, the map imagery its specialised cars were collecting in Mexico would help run its current service by finding the best pick-up and drop-off spots for drivers and riders to meet.
However, Uber also needs detailed maps -- preferably its own, if to expand its autonomous car network. The company was already testing self-driving cars in Pittsburgh, and last year it had started mapping cars in parts of the US.
Uber has also been building up its mapping technologies with its own funds and had last year, bought mapping startup deCarta as also a subset of Microsoft's mapping business.
