How Does Waze Make Money?

First off what is Waze? It is a community-driven and driver-supported GPS navigation software app. It was initially released in the year 2006 as FreeMap Israel.

This app gives the driver information about the traffic-related situation in the area and route details on which way the drivers must take to reach their destinations in the best possible time.


  • 2006 – Project founded and developed by Israeli programmer, Ehud Shabtai, as FreeMap Israel. A free digital database of the map of Israel in Hebrew.
  • 2008 – The project was commercialised and the company was formed called “Waze”.
  • 2009 – The company name was changed to “Waze Mobile Ltd.”
  • 2010 – Raised $25 million in the second round of funding.
  • 2011 – Raised an additional $30 million in financing. The app was also updated with real-time display, community-curated points of interests such as local street fairs and events.
  • 2012 – The app has been downloaded 12 million times worldwide and announced that it had reached 20 million users in July.
  • 2013 – Waze was bought by Google for $966 million.


Waze is a GPS navigation software app that works on smartphones and tablet computers that have GPS support. By downloading the app on the app store, you can access the application already. But how does Waze really make money?

Waze makes money through advertisement of located near shops, restaurants, and other small businesses. Waze analyses both your location and destination points and shows the most relevant ads for you. The app has a lot of profitability potential to both advertisers and IT entrepreneurs.


In October 2012, Waze launched their new advertisement system for small businesses. Giving these small businesses an opportunity to have a brief advertisement of their products and services. This system is similar to the Google Ads System.


An Ads System is an advertising platform where advertisers pay Waze (the hosting app) to display brief advertisement of the products and services they are offering to the app users. This advertising platform offers services under a pay-per-click (PPC) pricing model.


  • Advertisers choose a brief advertisement to be shown on the interface of Waze
  • Waze will update real-time releasing of data to the users making them see the nearest and the most relevant ads for them.
  • Ads System is a pay-per-click pricing model. For every click that an advertisement gets, it generates income to the hosting app
  • There is a certain amount that the system can only generate. For example, for every 20 clicks on a specific advertisement, the system can generate a $.25 to the hosting app.
  • Waze gets a lot of advertisement to different advertisers making the app more profitable year by year.


Developing a project has a lot of phase to go through before it can actually succeed. Waze, after a couple of years, is now one of the leading apps that hits the top chart of the most downloaded app worldwide. Software applications like Waze has a huge potential when it comes to generating income through advertisements.