Google to charge third-party subscribers for their service, Google Maps – Part 2

Google announced that companies being charged for the services are a mere 0.35 percent of whole population that uses it. However, unfortunately both Fubra and Nestoria among others come in that small 0.35 percent.

Big companies with strong capital support can afford to continue to use Google Maps by paying for the service but Fubra and Nestoria do not have the money to go for this now-expensive service.

“It’s nice to be thought of as one of the 0.35%, but not so good that the costs of using Google Maps on this particular site would be more than it earns in advertising revenue,” writes Neil Sweeney, a front-end developer at Fubra, whose World Airport Codes
site uses Google Maps the most.

A more sarcastic comment was issued by Ed Freyfogle, the co-founder of real estate search engine Nestoria: “Is belt tightening really needed at the same time as Google announces record revenues and profits?”

These two companies are profitable, there is no doubt about it, but that is still a small scale revenue. Paying gargantuan amount of money to Google, same as big corporate giants is not just, added Freyfogle.

“Our start-up is 6 years old and nicely profitable. But I’m not ashamed to admit that doesn’t mean we can pay the same rates as massive corporate multinationals, which is what was suggested.”

Companies like Nestoria, make profits with the help of Google’s free service. If these heinous tariffs are implemented on these companies, they might go bankrupt. Freyfogle fears that sticking to Google Maps’ expensive service will result in outflow of huge
chunks of money and that might not be reasonable for the overall health of his company.

There has to be a reasonable tariff for the service. The step taken by Google is undoubtedly rational but the company should not hoard the small and big companies into one stable. There has to be segregation in charges so that small companies do not have
to back off.

If Google does not take a sensible step in this regard, it is not farfetched that this strategy will lose a big customer base to its counterparts, which might result in losses instead of revenues.

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Posted by Usman Khalid on Dec 28 2011. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry