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Competitive advantage
TomTom has some key advantages over its arch nemesis Google in terms of cars, autonomous or otherwise, and that’s to do with the richness of its real-time traffic data sources TomTom can access. Google Maps’ data is typically garnered from smartphones, which may not always convey accurate information — people use Google Maps when walking, driving, cycling, running, skating, scooting, and sometimes even sailing. Thus, it’s hard for Google Maps to discern between a horde of people riding quickly in a bike lane or a bunch of cars crawling along next to them, for example. Plus, a smartphone’s GPS isn’t always accurate.
“It’s one of the reasons why Google and other tech companies are trying to get into the car because you get much better, much more stable data,” Schilling said.
Google does offer Android Auto for carmakers to integrate into their vehicles, but it still relies on a user’s smartphone. And Google is making some progress with its fully-integrated Android Automotive offering, having signed up Volvo and Audi a couple of years back, in addition to the Renault-Nissan-Mitsubishi Alliance mentioned earlier in this piece. But it has some way to go before it can claim the same reach as it does in mobile.
Then there is the elephant in the room: privacy. Google, among other technology giants, have been embroiled in all manner of data-related controversies, from harvesting to leaks. Google’s core business is built on monetizing people’s private information, so this in turn could make some car companies think twice about signing up Google to power their future navigation systems.
For the likes of TomTom and Here, a primary focus on drivers, rather than advertising, may work to their advantage. And in the end, privacy could be one of their biggest weapons as the next big mapping war plays out.
“Privacy is big,” Schilling added. “Apple made it [privacy] their main product now, right? So it’s the same story for us. We’re not using data for advertising. We’re using data to actually enhance the product.”
Up the chain
TomTom’s renewed competition with Google extends beyond automobiles and into the broader developer realm. In May last year, Google announced major changes to the Google Maps API, which included consolidating its APIs into just three core products: Maps, Routes, and Places. Part of this entailed changing its pricing into a single pay-as-you-go plan, and also requiring developers to provide a credit card and billing account for all API access. The changes, which went into effect in June, raised some ire in the developer community, where many argued they would end up paying significantly more.
What better way for TomTom to respond than by launching a completely free maps and traffic software development kit (SDK) for mobile developers, giving them access to maps and traffic information, without limitations, on Android and iOS? The idea behind this move was to lure app developers to TomTom’s upgraded “free” SDK, then get them to become paying users to access premium features, such as routing or address searches. It also mirrored a move made by rival Here a month earlier.
However, TomTom’s motive wasn’t purely about getting developers to eventually pay to access more features. The more third-party applications that use TomTom’s mapping smarts, the more location data that TomTom can access, which improves the overall quality of its product for everyone, including carmakers. In short, this move was about giving TomTom more endpoints and extra data on how people travel — for very little additional effort on its part.
“Rather than us building the products, it’s [sometimes] better if you move up the chain, where you have further reach,” Schilling said. “The [free SDK] uptake has been good.”
The future, according to TomTom
It’s too early to say who will win the autonomous vehicle mapping war — in truth, there will likely be multiple contenders in there for the long haul.
TomTom, for its part, has faced a number of seismic shifts in the technology landscape in the past 30 years, and it has always come out the other side — perhaps not unscathed, but certainly battle-hardened. When pressed on what the future holds for TomTom, Schilling had one short response: “It’s all about autonomous driving,” he said.
Striking automotive partnerships and building HD maps sets the foundation for autonomous cars, but the next big development for TomTom will be maps that can update instantly so that cars have an accurate view into their environment.
“TomTom makes 1.5 billion changes to its digital maps [monthly], which are delivered to our customers on a weekly basis,” Schilling added. “This proves the scalability of TomTom’s platform, and brings us a step closer to real-time maps. That is key to the future of autonomous driving.”