Arguably, the main incentive is the market advantage any of the bidders would gain. The added value of the technologically advanced mapping service and the heaps of data it amassed in years of expertise investment glitters a winning light.
Uber Technologies is already known for its Taxi service, as well as for its Pool service that brings together more participants to a drive. But the ambitions of the household name aim much higher. Uber announced its plans to expand to the logistics sector, taking its business one step further. Becoming a highly ranked logistics company requires Uber to roll back on licensing data from Google Maps.
Both Google Maps and Apple Maps are the main competitors for Nokia HERE. The three mapping services are the best the market has to offer regarding data collection and technologically advanced mapping service. Provided either Google or Apple Inc. enter the bid for Nokia HERE and wins, either of the companies would gain monopoly of the market.
And that to the despair of the other bidders which include, alongside Uber, the German automakers BMW, Audi and Mercedes Benz. It certainly is a fierce competition. However, Uber is announced to have entered the bid for Nokia HERE at 3 billion dollars. Reportedly, the value of Nokia HERE was placed in between 2 billion and 4 billion. There is no indication of how the bidding will eventually unfold.
What is clear so far is that in order to keep its position in the market and to accomplish its expansion goals, Uber needs Nokia HERE. Firstly, it is a stern competitor to Google Maps and it boasts an extensive data collection and expertise investment. Secondly, given the circumstances in which automated cars now have navigation systems that are powered by digital mapping, the list of perks increases. All services offered by Uber so far would lessen the dependence on Google Maps and function on in-house technology.
Uber would benefit greatly from acquiring Nokia HERE, especially in the light of its recent February deal with Carnegie Mellon University. Uber and Carnegie agreed to develop autonomous vehicle technology. With so many pluses in their portfolio, Uber’s possible buy of HERE would be good news.
Image Source: Politico