lovakia-based navigation software developer
Sygic has announced last week the acquisition of
Be-On-Road, a turn-by-turn GPS navigation application for iOS and Android that uses free map data from Openstreetmap.
Be-On-Road was developed by Czech Republic-based
Aponia Software, but this company will stay independent, the acquisition concerns only the navigation app.
In a phone interview with GPS Business News, Sygic CEO Michal
Stencl explained the rationale behind this product acquisition: “This is
a great acquisition that offers us a stake into the low end smartphone
navigation market that uses Openstreetmap or other crowdsourced
databases. This is also a protection against future competition, indeed
Be-On-Road has been growing very rapidly, especially on Android. The app
currently enjoys an average of 60,000 downloads per day.“
Last year Sygic posted revenue of $18 million. This year Stencl
expects the revenue to grow 30 percent. From 55 million navigation app
downloads to date he expects to reach 100 million users mid 2015.
Stencl currently estimates his company is the number two mobile
navigation player worldwide in terms of downloads after Google/Waze. But
unlike Google, he does not believe in making a good business with
advertising; he prefers to monetize downloads with a freemium approach
using in-app purchases.
The monetization of the free Be-On-Road app today is based on upgrades
to better maps (i.e. TomTom or HERE), but in the future Stencl will
prefer to stick to OSM for this app and offer new features as in-app
purchases.
Automotive App Business
Besides the low end navigation market and his current business of
premium paid apps, Sygic is also pursuing business with automotive
companies with a dedicated team. Recently the app has been selected by
Jaguar Land Rover to be part of InControl, the app platform of the
luxury car maker.
Stencl forecasts to close deals with 2 or 3 more automotive
players in the coming months. “We believe smartphone will play a primary
role in vehicle navigation,“ he said to GPS Business News.
Stencl has for a long time been thinking that smartphone will
defeat on-board navigation systems. Unlike his Hungarian competitor at
NNG, he did not try to offer its software to car makers for on-board
systems. Future will tell us if he is right.
Continued...