On 25/10/2010 13:56, Jim wrote:
> On 25/10/10 12:08, Roger Mills wrote:
>> Can anyone throw any light on Google's business model for doing all this?
>> The cost of driving their camera-equipped cars along every road on the
>> planet[1] must be colossal. Presumably this must somehow generate a
>> commensurate amount of revenue - but I struggle to understand how.
>
> Out of the two major map data suppliers, Navteq is owned by Nokia,
> Teleatlas by TomTom.
>
> As such, by gathering their own data about the road network it allows
> them to offer map and navigation services without paying licensing fees
> to their competitors.
>
> Most of their revenue comes from selling advertising alongside free
> services, of course.
The numbers are stunning. Look at:
http://investor.google.com/financial/tables.html
in 2009:
revenue 23.6 Gigadollars
costs and expenses 15.3 Gigadollars
so operational income 8.3 Gigadollars = 35% of revenue!
Wish I could do that......................