Uber is reportedly looking into purchasing Nokia's HERE maps system, and it may be spending up to $3 billion in the acquisition.
There are a number of reasons that such an acquisition would be a good idea for Uber, in a number of different markets.
One of the biggest reasons that Uber might be looking to purchase its own maps technology is to reduce its dependence on Google, which currently provides Uber with its maps. All of the maps behind the Uber app and systems are powered by Google, essentially meaning that Google has a lot of power over Uber.
Uber has made a number of recent moves suggesting that it needs to move towards self-sufficiency. The company is reportedly looking into shipping packages as well as transporting people, suggesting that it wants to become more of a full logistics company rather than simply a ride-sharing company.
Of course, that's not the only reason that Uber would want to reduce its dependence on Google. The company has been very vocal about its fondness of autonomous cars, a market that Google has also been experimenting in over the past few years. In fact, Uber is even partnering with Carnegie Mellon University to work on the technology. It makes sense — Uber wouldn't have to pay for driverless cars and passengers could even be charged less, making it much more attractive to use Uber.
However, making driverless cars work is not that simple — not only do they need a multitude of sensors in order to sense things like signs, pedestrians and other cars, but they also need to know where they're going. That's where maps come in.
For a driverless car to properly work, it will need to be able to access extremely precise and up-to-date maps at all times. This will include access to things like roadwork and accidents.
All in all, it would be a huge undertaking for Uber to operate its own maps system with the goal of using it for driverless cars, but it would give it much more freedom and control to work on the technology.
The acquisition would be a big one for both Uber and Nokia. $3 billion is no small amount, and with the company's valuation of $18.2 billion, $3 billion represents a good chunk of its change. The money would also be very welcome at Nokia, which, today, is not worth anywhere near as much as it was in its glory days.
Only time will tell exactly how Uber uses the maps system, if indeed it does buy it, and it will certainly be interesting as the autonomous car market heats up.
