Google vs. HERE – Perfect parking

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HERE has more potential but needs to execute.

• Google is upping the ante in the race to provide value-added services on top of digital maps, but with the right execution, HERE should be able to provide a much better service.
• In January Google launched its parking difficulty icon on Android Maps which give the user an idea of how difficult it will be to park at the user’s destination.
• This was initially launched in 25 US cities but this has been: 1) extended to another 25 locations (Canada, Europe and Brazil), and 2) expanded to offer parking suggestions in the area.
• This service is based on historical parking data as well as data gathered from smartphones using Google services within a certain location to ascertain how busy that location is.
• This is similar to the popular times and visit duration data that Google provides for businesses and will give the user an idea of how long he should expect to spend looking for a place to park.
• While this will be a useful addition to Google Maps, I think that HERE should be able to offer a service that is vastly superior.
• This is for two reasons:
  • First, data quality: While Google’s service is based on estimates and AI, HERE’s service should be based on much more specific data.
  • This is because HERE has access to automotive sensor data while Google does not.
  • For example, when HERE’s location platform detects an ignition start, it can be almost certain that the space occupied by that vehicle is about to be vacated.
  • It will also know from ignition switch-off which spaces are occupied and which are not.
  • This gives it a highly accurate, real time picture of the parking environment meaning that it’s HERE ON-Street Parking service should be much more accurate than Google.
  • Second, positioning. Vehicle positioning is often much more accurate than that offered by mobile phones as the antennas are larger and are almost always open to the sky.
  • This means that HERE should have a more accurate real-time picture of exactly where the devices connected to its platform are.
  • Combining this with the highly granular data it gets directly from the vehicle, should allow HERE to provide its users with a more accurate and relevant parking service than Google Maps.
• This is exactly the kind of differentiation that HERE needs to win the attention of users but there are caveats.
• Google is present on almost every smartphone in the market (except China) meaning that although its data set is much less accurate, it has a much fuller picture of the environment.
• HERE by comparison is at a very early stage in getting devices connected to its location platform meaning that its lacks the visibility of the environment to make its service work really well.
• This allows Google to offer a workable service today, while HERE is still at the stage of building out its network of data collecting devices.
• Furthermore, should Google manage to get access to the sensor data generated by vehicles (Android Auto offers no access), then HERE’s key advantage will be lost.
• However, most automakers have recognised that Google represents a meaningful long-term threat and are keen to keep their sensor data to themselves.
• Google has done a deal with Volvo and Audi but whether it has managed to gain access to sensor data is still unclear.
• The net result is that HERE has an opportunity to roll-out a much better service and win over users, but it needs to quickly achieve scale or risk being swamped by Google should it gain access to sensor data.