Monday, December 17, 2007

Drived Products

The news that a third center-line road data provider is starting up is very interesting. In an interview with Directions they are relatively closed-lipped about why they think they can compete with the big boys, but a good guess can be had by looking at their earlier news releases. This not a road mapping company, this is a computer vision company. Presumably the liberal application of computer vision allows them to combine their GPS and intertial data with road sign readings to build out full navigation-restricted data without a heavy manual data post-processing step.

That still leaves the tricky aspect of actually driving their cars down every street in the country, and I wonder what mapping source they used to ensure they weren't missing any. The mathematics of driving every road in the country are also daunting: 4 million miles of roads in the USA, at an average speed of 20 miles per hour, for 8 hours a day, implies 25,000 days of driving! Or $2M using $10/hour drivers, plus the capital cost (at least $5M) of the 70+ vehicles needed to do the thing in about a year.

On the other hand, given that Nokia just paid $8B for NavTeq, the cost of entry into this marketplace is incredibly low — $20M maybe? I think I'm in the wrong business, time to hit the road!

1 comment:

Brian said...

While you Canadians are no doubt making multiple shopping raids across the border this holiday season to take advantage of our weak currency, I'm not sure you'd want to spend 8 hrs/day with your hypothetical $10/hr co-worker.

Thanks for using miles as the unit of measure in your example though.


BT

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