The Maps and Location Data Quietly Powering Everything
Map and location data underpins navigation, delivery, ride hailing, logistics, and countless apps. Building and maintaining it is enormously expensive, which makes controlling it a powerful and contested position.
The Invisible Foundation
Map and location data underpins an enormous range of applications: navigation, delivery, ride hailing, logistics, finding nearby places, and countless apps that depend on knowing where things are and how to get around. This data is an invisible foundation, quietly powering services people use constantly without thinking about the maps and location data beneath them.
Building and maintaining this data, accurate, comprehensive, and current maps and location information across the world, is enormously expensive, requiring vast effort to map everywhere and keep it updated as the world changes. This expense makes controlling map and location data a powerful position, since the services that depend on it need the data and cannot easily build their own, and it makes the data a contested asset, since controlling the foundation that so many services depend on is valuable and strategically important. The map and location data quietly powering everything is thus both essential infrastructure and a powerful, contested asset.
Every navigation, delivery, and ride hailing app runs on maps someone had to build and keep current across the entire world. That is fantastically expensive, which is why whoever owns the map holds real power over everyone who needs it.
Why It Is So Expensive
Building and maintaining map and location data is enormously expensive because of the scale and the need to keep it current.
| Cost driver | Why it is expensive |
|---|---|
| Mapping everywhere | Vast effort to cover the world |
| Keeping current | The world constantly changes |
| Accuracy and detail | Precise data for navigation and more |
| Location information | Data about places, not just roads |
Mapping everywhere requires vast effort to cover the world in detail, keeping the data current requires constantly updating it as roads, places, and conditions change, achieving the accuracy and detail that navigation and other uses require is demanding, and gathering location information about places, not just roads, adds further effort. The combination, mapping the world in detail and keeping it constantly current and accurate, makes building and maintaining map and location data enormously expensive, an ongoing effort requiring vast resources. This expense is the key to the strategic importance, since the cost of building and maintaining the data means the services that depend on it cannot easily build their own, making control of the data valuable and the data a barrier that few can overcome.
Why Controlling It Is Powerful
Controlling map and location data is powerful because so many services depend on it and cannot easily build their own, given the expense, making the data a valuable, strategic asset. A company that controls comprehensive, accurate map and location data holds a position that many services need, since they depend on the data for their core functions and cannot economically replicate it.
This power makes map and location data strategically important and contested, since controlling it provides leverage over the services that depend on it and a valuable asset in itself. Companies have invested enormously to build and control map and location data, and the services that depend on it face the choice of relying on others data, with the dependence that entails, or investing to build their own, which is expensive. The strategic importance drives investment and competition to control the data, since owning the foundation that so many services depend on is powerful. This makes map and location data a contested, valuable asset, with companies investing to control it and the services that depend on it navigating their reliance on it, reflecting the power that comes from controlling the expensive, essential foundation of location based services.
The Data Advantage and the Contest
Map and location data benefits from advantages that reward scale and usage, intensifying the contest to control it. The data improves with usage, since services that use it can gather data that improves it, from user movements, reports, and activity, creating a cycle where more usage improves the data, which attracts more usage. Scale in the data and its usage thus creates advantages, since the most used and comprehensive data becomes the best, reinforcing the position of those who control it.
This dynamic, where usage improves the data and better data attracts usage, makes controlling the leading map and location data a reinforcing advantage, intensifying the contest to control it, since the winner gains a self reinforcing position. The contest involves companies investing to build and control the data, gathering usage to improve it, and competing to be the foundation that services depend on. The stakes are high because the data underpins so many valuable services and the advantages reward the leader, making control of map and location data a significant strategic contest. The companies that control the leading data hold a powerful, reinforcing position, essential to location based services and improved by the usage it attracts, which is why map and location data is both invisible infrastructure and a fiercely contested strategic asset at the foundation of the many services that depend on knowing where things are.
The Bottom Line
Map and location data underpins navigation, delivery, ride hailing, logistics, and countless apps, an invisible foundation quietly powering services people use constantly, and building and maintaining it across the world is enormously expensive, requiring vast effort to map everywhere and keep it current. This expense makes controlling the data powerful, since the services that depend on it cannot easily build their own, making the data a valuable, strategic, contested asset. The data benefits from advantages that reward scale and usage, since usage improves the data and better data attracts usage, creating a reinforcing position that intensifies the contest to control it, making map and location data both essential infrastructure and a fiercely contested strategic asset at the foundation of the many services that depend on knowing where things are and how to get around.