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Amazon's new "Amazon Location" could unravel the Google Maps monopoly

Snacks / Friday, December 18, 2020

Darth Bezos strikes again... Global domination has taken a very literal turn: maps. Amazon's omnipresent cloud service, AWS, just launched "Amazon Location" (unfortunately, not a real-time package tracker). This mapping service lets developers add location-based features to their apps.

From the North Pole to the South... The supreme ruler of mapping is... Google Maps. Maps has 1B+ users, and is also used by a ton of map-reliant apps like Uber and DoorDash. Without Google, Uber can't direct drivers, and DoorDash can't stop you from asking "where is my ramen." From 2016 to 2018, Uber paid Google $58M to use its Maps service. And...

  • Uber signed a 4-year renewal deal with Maps in July because it's the only mapping solution "that can provide the global functionality we require."
  • Amazon Location is not as all-encompassing as Maps, but the Zon is making up for it in the best way it knows how: lower prices.

AWS is Amazon's silent (but deadly) superpower... It's a "silent server" for a huuuge swath of the digital economy, powering the operations of millions of companies from Netflix, to Slack, and Shell. Last quarter it made up 12% of Amazon’s sales, bringing in a gnarly $11.6B — and it made up over half of Amazon's total profit. 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.

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