Why are companies defecting from Google Maps?
First Foursquare and now Apple are scaling back their use of Google Maps. Why are major players starting to back way from Google's nearly ubiquitous mapping service? — In recent years, Google Maps has transformed itself …
Context & Ripple Effects
In 2008, Google Maps was gaining ground against MapQuest, establishing Google as an increasingly important mapping supplier. Apple and Foursquare scaling back that reliance makes platform dependency—not merely map quality—a strategic issue for prominent customers.
First-order effects
- Apple and Foursquare reduce their dependence on Google Maps, while Google loses two visible examples of its mapping service embedded in third-party products.
Second-order effects
- Alternative mapping suppliers gain a stronger opening to pitch customers that want greater control over a core location feature.
- Google must weigh the value of broad third-party adoption against the terms and product choices that can push major customers to diversify.
Third-order effects
- If more product companies treat maps as a strategic layer rather than a commodity API, mapping competition will center on control of the customer experience as well as coverage and data.
The trend: Digital platforms are becoming less interchangeable for major customers, encouraging them to reduce reliance on suppliers that control a product-critical layer.