Amazon is coming to you Google Maps

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If you ask which is the bigger threat to the other, Amazon or Google? Many will argue that it's Google, because it's dead set on diversifying its business and is investing heavily in promoting it's cloud business. Thus encroaching on Amazon's profit machine -AWS. I beg to differ. 

As mentioned in a previous article, Amazon is already closing in on Google's advertising business and despite all Google's investments, it's clear that GCP is not going to catch up to AWS any time soon. Now Amazon is posing yet another threat to another big business for Google - Mapping. How So?

AWS is Amazon's silent (but deadly) superpower. It's a "silent server" for a huge swath of the digital economy, powering the operations of millions of companies from Netflix to Slack and Shell. Last quarter  it made up over half of Amazon's total profit. Recently AWS announced a new location service called "Amazon Location". No, this is not not a real-time package tracker. It's a mapping service that lets developers add location-based features to their apps. This will compete head-on with Google Maps.

Google Maps is the supreme ruler of mapping. It has 1B+ users, and is also used by a ton of map-reliant apps like Uber and DoorDash. While Amazon Location may not be as fully featured as the Google Maps, AWS promises that Location will be more affordable. Basically, Amazon is making up for the gaps in the best way it knows how: lower prices.

Mapping is huge and very profitable business for Google's Cloud Platform (GCP). Since millions of large and small businesses use AWS to power their operations, Amazon has a major leg up when launching new (cheaper) services like Location. Amazon Location is yet another step in Amazon's global domination. It will certainly improve Amazon's bottom line and AWS's already impressive contribution to it.


Disclaimer: This post is merely my own assessment and is not an investment recommendation. For professional advice, seek input from a licensed investment advisor.


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