Mark mahaney rbc yelp survey driver#

Today, Maps primarily makes money by selling advertisements to businesses, even though Google has repeatedly said that it doesn't want those ads to distract from its navigation features.

Mark mahaney rbc yelp survey driver#

Ads are the major revenue driver for Maps, but there's still room for more. Instead of having to wait years for some of the tech giant's long term bets to start paying off, Mahaney shows that the company can make incremental changes to existing properties - like Maps - and create major upside to its bottom line. That widespread usage is good news for Google, as the note also highlighted the company's massive, 80% market share of navigation apps today, which is split between Google Maps (representing 67% of the market, according to the report) and Waze (which represents 12%).īetween Google Maps and Waze, Google owns around 80% of the navigation app market share.Īs Google looks to prove that there's diversity in its revenue potential beyond traditional search ads, Mahaney's note should provide a bit of relief to Wall Street. As Mahaney noted, navigation apps have become 'something of a utility,' with 77% of smartphone owners using them regularly, according to a study cited in the report.

Google Maps, on the other hand, doesn't have question marks surrounding its consumer viability. Google's 2 apps give it a massive mapping market share

The investment firm said in a research note that it believed Alphabet's self-driving car business was now worth $105 billion, instead of $175 billion, because of Waymo'rs delays and complications launching a commercial business.

Morgan Stanley slashed its estimated valuation of Alphabet's Waymo by 40% last week. The optimism about Google's trusty Maps product comes as newer initiatives face skepticism. The total revenue for Google's parent company, Alphabet, was over $130 billion in 2018. And there's the Waymo self-driving car initiative, developing a robotaxi service that could change the way people travel.īut according to a recent note by RBC Capital analyst Mark Mahaney, the Alphabet asset with the most potential to become a revenue machine is Google Maps, the digital mapping product that has already become an essential part of more than one billion people's lives around the world.Ĭalling Maps one of the 'greatest under/un-monetized' online platforms in the world, Mahaney recently flagged the app as his basis for boosting his price target for Alphabet's stock, projecting that Maps will deliver an additional $1.9 billion to $3.6 billion in revenue by 2021.Īlthough Google does not share its specific revenues from Maps today, Mahaney estimated that the navigation product - first released more than 14 years ago - would generate over $3.5 billion in revenue in 2019. There's the cloud computing division, gaining momentum, but still a distant third behind market leaders Microsoft and Amazon. Specifically, Mahaney believes that an increased ad load on the Maps mobile app, while allowing small to medium-sized businesses to advertise on the platform could be minor changes that lead to major financial upside for Google.įor years, Wall Street has been trying to figure out which part of Alphabet's business - beyond Google Search ads - will emerge as its next big money maker.RBC's Mark Mahaney estimated that continued iterations of Google Mpas will bring in an additional $1.9 billion to $3.6 billion in revenue by 2021.One of the top internet analysts on Wall Street has dropped a pin on Google Maps - one of the company's most widely used properties - as the next big money-maker.Account icon An icon in the shape of a person's head and shoulders.