How Hivemapper Can Outcompete Google Maps | Ariel Seidman

The Origin of Hivemapper

Hivemapper, a revolutionary decentralized mapping project, has its roots in the early days of the internet search wars. Ariel Seidman, the co-founder and CEO of Hivemapper, began his career at Yahoo in 2005-2006, working in the search group during a time when Yahoo was highly competitive with Google, holding about 30-35% market share in search. Seidman's role involved overseeing local data, as approximately 30% of all queries coming into Yahoo search at the time had some sort of local geography or mapping component.

During his time at Yahoo, Seidman observed the growing costs associated with building valuable mapping datasets. He witnessed Google's Street View program and other data collection initiatives that allowed Google to build their own proprietary data, rather than simply licensing it. This strategic move by Google began to give them a significant edge over Yahoo in maps and local data products.

Seidman recognized the potential in creating a more cost-effective method of collecting high-quality mapping data. He proposed to Yahoo's executive team that they should invest hundreds of millions of dollars to compete with Google's efforts. However, the proposal was rejected, which in retrospect, Seidman views as a significant mistake for Yahoo.

The Birth of a New Mapping Paradigm

Frustrated by Yahoo's lack of vision, Seidman left the company to start his first venture. His goal was to find a way to lower the cost of collecting high-quality mapping data while maintaining a certain level of quality. This approach, he believed, would be compelling because traditional mapping approaches were either very costly, like Google Street View, or relied on crowdsourcing, which often resulted in lower quality data.

Seidman's first company, Gigwalk, launched in 2010 with the aim of collecting data using smartphones. The company scaled to about two to three million contributors worldwide. However, Gigwalk faced fundamental business model problems that were never fully addressed, resulting in what Seidman describes as a "single" in Silicon Valley terms.

The Evolution to Hivemapper

In 2015, Seidman decided to tackle the mapping challenge once again, this time with a focus on using drones. The idea was to build a map of the world using drones, which could provide both aerial views and street-level navigational components. However, this approach faced significant hurdles, including limited battery life and complex local regulations that varied between jurisdictions.

Realizing the limitations of drones, Seidman pivoted to street-level mapping using smartphones. This method also proved challenging due to high churn rates among contributors and poor positioning technology in mobile devices. The team then experimented with third-party dashcams, which showed better retention rates but still suffered from subpar positioning technology and limited APIs.

The Crypto Pivot

It was at this point that Seidman reached out to Amir, presumably Amir Haleem of Helium, another successful decentralized physical infrastructure network (DePIN) project. This connection led to an introduction to Anatoly Yakovenko, co-founder of Solana, and marked the beginning of Hivemapper's integration of cryptocurrency into its model.

The decision to incorporate crypto was driven by several factors. Firstly, Hivemapper was facing challenges with traditional payment methods, particularly when sending money to contributors in countries like Nigeria. Secondly, some contributors, especially in the Philippines, were requesting to be paid in cryptocurrency for ease of transaction.

The Competitive Edge of Crypto Incentives

Perhaps the most compelling reason for adopting crypto was the realization that it could provide a significant competitive advantage. Seidman explains, "If we're paying somebody, let's just make it, we have these like these tiles. And if you map them, you would earn five cents. Okay. And I was like, okay, let's play this out here. If we play this out in this really works, well, Google has sitting on $120 billion of cash, they can pay somebody 25 cents, right?"

By using cryptocurrency, Hivemapper could create a deeper emotional connection and sense of ownership among contributors. This approach goes beyond simple transactional relationships, allowing participants to feel like stakeholders in the project's success. Seidman notes, "I think that was like very, it's a deeper emotional connection to the project than just getting paid five cents per tile."

How Hivemapper Works

Hivemapper's system revolves around two primary modes of contribution: driving and AI training. For drivers, the process involves purchasing a Hivemapper dashcam (available in two models priced at around $250 and $450-500) and installing it in their vehicle. Once connected to the Hivemapper app, drivers simply go about their normal routines, with the dashcam automatically capturing mapping data as they drive.

The second mode of contribution, AI training, doesn't require a dashcam. Contributors can use their phones or computers to help train Hivemapper's AI systems in identifying and verifying map features such as speed limit signs, stop signs, and other road elements.

The Value Proposition for Customers

Hivemapper's collected data is made available through a set of mapping APIs. These include a basic map image API and a map features product that provides detailed information about road signs, construction work, and other elements. The company's customers integrate this data into their own products or use it to supplement existing data products.

One of Hivemapper's key advantages is the freshness of its data. Seidman claims, "Fundamentally, Hivemapper, because we're so much lower cost, we're seeing a given location 30 to 50 times more frequently than Google." This frequency of updates allows Hivemapper to offer more current and accurate mapping data compared to traditional providers.

The Power of Freshness and Coverage

Freshness is considered Hivemapper's killer feature, with Seidman explaining that Google might update data for downtown San Francisco once every 12 months, while suburban areas might only be updated every 2-4 years. In contrast, Hivemapper's decentralized network of contributors allows for much more frequent updates across a wider range of locations.

As the network expands, coverage is expected to become another significant advantage. Hivemapper can potentially map areas that are economically unfeasible for traditional mapping companies to cover, such as small towns in rural Brazil or remote areas of Kazakhstan.

The "Burst" Feature

Hivemapper has recently introduced a feature called "Burst," which allows customers to request specific locations to be mapped or updated. This feature enables targeted data collection based on customer needs, with contributors incentivized to map these requested areas. Seidman shares an anecdote about a customer who set a 90% completion rate target for seeing their locations at least twice a week, which Hivemapper exceeded with a 99% completion rate.

The Potential for Diverse Applications

The versatility of Hivemapper's system opens up possibilities for various applications beyond traditional mapping. For instance, private equity firms could use the service to monitor parking lot occupancy at retail locations they're considering investing in. Another potential application could be similar to Pokemon Go, where businesses could incentivize increased foot traffic by requesting more frequent mapping updates in their area.

Challenges and Future Directions

While Hivemapper has made significant strides, Seidman acknowledges several challenges the company faces. One of the primary concerns is managing compute and storage costs associated with processing and storing the vast amounts of data collected. The company is exploring ways to optimize these processes, including moving more compute to the edge (i.e., the dashcams themselves) and implementing smarter data retention policies.

Another challenge lies in simplifying the user experience, particularly for those unfamiliar with cryptocurrency. Seidman emphasizes the importance of making the system accessible to mapping enthusiasts who may not have prior experience with digital wallets and other crypto concepts.

The Vision for Hivemapper's Future

Looking ahead, Seidman envisions Hivemapper becoming an integral part of advanced driver-assistance systems (ADAS) and autonomous vehicles. He believes that as the mapping data becomes more comprehensive and up-to-date, it will be invaluable for these emerging technologies that require highly accurate and current mapping information.

Ultimately, Seidman's goal is to create a mapping system that is owned and maintained by its users, rather than being controlled by a large corporation. He argues that maps are an essential tool for humanity and should be a shared resource rather than a proprietary asset of any single entity.

The Role of Solana in Hivemapper's Success

Hivemapper's decision to build on Solana was driven by two primary factors: trust and cost. Seidman explains that the low transaction fees on Solana were a crucial consideration, as they allowed the project to scale without incurring prohibitive costs. Additionally, the support and flexibility offered by the Solana team, including the willingness to assist with potential migration if needed, instilled confidence in the choice of blockchain.

The network effect of other decentralized physical infrastructure (DePIN) projects on Solana also played a role in Hivemapper's success. Seidman notes that there is a synergy among Solana-based DePIN projects, with contributors often participating in multiple initiatives within the ecosystem.

Lessons for the Crypto Industry

Reflecting on his experience with Hivemapper, Seidman offers several insights for the broader crypto industry. He cautions against the tendency to focus solely on supply-side growth without adequately addressing demand. He also emphasizes the importance of simplifying crypto products and services to make them more accessible to mainstream users and developers.

Seidman expresses some disappointment with the current state of venture capital in the crypto space, noting that there seems to be an overemphasis on infrastructure projects rather than applications that can bring crypto to a wider audience. He argues that the industry needs more high-quality applications that can demonstrate the practical value of blockchain technology to everyday users.

The Importance of Optimism and Entrepreneurship

Throughout the discussion, Seidman touches on the broader theme of optimism and entrepreneurship in America. He expresses concern about a perceived decline in optimism and suggests that this could be detrimental to the country's innovative spirit. Seidman argues that fostering a more positive outlook and encouraging entrepreneurship should be a priority for policymakers and business leaders alike.

Hivemapper's Impact on the Mapping Industry

As Hivemapper continues to grow and evolve, it has the potential to significantly disrupt the mapping industry. By leveraging crypto incentives and a decentralized network of contributors, the project is challenging the dominance of established players like Google Maps. The company's ability to provide fresher, more comprehensive data at a lower cost could reshape how businesses and consumers interact with mapping services in the future.

The Future of Decentralized Physical Infrastructure Networks

Hivemapper's success story serves as a compelling example of the potential for decentralized physical infrastructure networks (DePIN) to solve real-world problems. As more projects in this space emerge and mature, we may see a shift towards more community-driven, decentralized solutions for various types of infrastructure and data collection.

Conclusion: A New Era of Mapping

Hivemapper represents a bold reimagining of how maps are created, maintained, and used in the digital age. By combining the power of blockchain technology with innovative incentive structures and a decentralized network of contributors, the project is paving the way for a more democratic, up-to-date, and comprehensive mapping system.

As Hivemapper continues to expand its coverage and refine its technology, it has the potential to not only compete with established mapping giants but also to unlock new possibilities for how we understand and interact with the world around us. The project's success could herald a new era of mapping that is more responsive to user needs, more inclusive of diverse geographies, and more aligned with the principles of shared ownership and community participation.

Facts + Figures

• Hivemapper has mapped over 6 million unique road kilometers, which is about 10% of the world's roads, in just 12 months.
• The project has over 25,000 contributors, including drivers and AI assistants.
• Hivemapper is growing four times faster than Google Street View did in its early days.
• The company offers two dashcam models, priced at around $250 and $450-500.
• Hivemapper sees a given location 30 to 50 times more frequently than Google Maps.
• Google typically updates data for downtown San Francisco once every 12 months, and suburban areas every 2-4 years.
• Some areas outside the United States may only be updated by Google every 8-10 years, if at all.
• Hivemapper's "Burst" feature achieved a 99% completion rate for a customer who requested locations to be mapped at least twice a week.
• A ride-sharing company (not Uber) spends $25-30 million per year on Google Maps APIs.
• Hivemapper raised an $18 million Series A funding round.
• The project uses Solana blockchain for its crypto incentives due to low transaction costs and trust in the ecosystem.
• Hivemapper aims to become part of advanced driver-assistance systems (ADAS) and autonomous vehicles in the future.
• The company is exploring ways to optimize compute and storage costs, including moving more processing to the edge (dashcams).
• Hivemapper's long-term vision is to create a mapping system owned and maintained by its users, rather than controlled by a large corporation.

Questions Answered

What is Hivemapper?

Hivemapper is a decentralized mapping project that aims to create fresher, more comprehensive global maps using crypto incentives and a network of contributors. It leverages dashcams and AI training to collect and process mapping data, offering an alternative to traditional mapping services like Google Maps. Hivemapper's goal is to provide more up-to-date and detailed mapping information at a lower cost than established competitors.

How does Hivemapper work?

Hivemapper works through two main modes of contribution: driving and AI training. Drivers purchase a Hivemapper dashcam and install it in their vehicle, which automatically captures mapping data as they drive their normal routes. For AI training, contributors use their phones or computers to help identify and verify map features like road signs and construction work. This data is then processed and made available through Hivemapper's APIs for customers to use in their products or services.

Why did Hivemapper choose to use cryptocurrency?

Hivemapper adopted cryptocurrency for several reasons. Firstly, it solved issues with traditional payment methods, especially when sending money to contributors in countries like Nigeria. Secondly, it created a deeper emotional connection and sense of ownership among contributors, going beyond simple transactional relationships. Lastly, it provided a competitive advantage by making it harder for large companies like Google to simply outbid Hivemapper for contributors, as the incentive structure includes potential long-term value growth of the tokens.

What advantages does Hivemapper have over traditional mapping services?

Hivemapper's main advantages are the freshness and potential coverage of its data. The project claims to see a given location 30 to 50 times more frequently than Google Maps, allowing for more up-to-date information. Additionally, Hivemapper's decentralized network of contributors enables it to potentially map areas that are economically unfeasible for traditional mapping companies to cover, such as small towns in rural areas or remote locations.

How does Hivemapper plan to monetize its mapping data?

Hivemapper monetizes its data through a set of mapping APIs that customers can integrate into their own products or use to supplement existing data products. These include a basic map image API and a map features product providing detailed information about road signs, construction work, and other elements. The company is also exploring opportunities in advanced driver-assistance systems (ADAS) and autonomous vehicles, which require highly accurate and current mapping information.

What is the "Burst" feature in Hivemapper?

The "Burst" feature is a recent addition to Hivemapper that allows customers to request specific locations to be mapped or updated. This enables targeted data collection based on customer needs, with contributors incentivized to map these requested areas. The feature has shown impressive results, with one customer reporting a 99% completion rate for seeing their requested locations mapped at least twice a week.

Why did Hivemapper choose to build on Solana?

Hivemapper chose to build on Solana primarily due to trust and cost considerations. The low transaction fees on Solana were crucial for allowing the project to scale without incurring prohibitive costs. Additionally, the support and flexibility offered by the Solana team, including their willingness to assist with potential migration if needed, instilled confidence in the choice of blockchain. The network effect of other decentralized physical infrastructure (DePIN) projects on Solana also played a role in Hivemapper's decision.

What are the main challenges Hivemapper faces?

Hivemapper faces several challenges, including managing compute and storage costs associated with processing and storing vast amounts of data. The company is exploring ways to optimize these processes, such as moving more compute to the edge (i.e., the dashcams themselves) and implementing smarter data retention policies. Another challenge is simplifying the user experience, particularly for those unfamiliar with cryptocurrency, to make the system more accessible to mapping enthusiasts who may not have prior experience with digital wallets and other crypto concepts.

What is Ariel Seidman's vision for the future of mapping?

Ariel Seidman envisions a future where maps are owned and maintained by their users, rather than being controlled by large corporations. He believes that maps are an essential tool for humanity and should be a shared resource. Seidman sees Hivemapper becoming an integral part of advanced driver-assistance systems (ADAS) and autonomous vehicles, providing the highly accurate and current mapping information these technologies require. Ultimately, his goal is to create a more democratic, up-to-date, and comprehensive mapping system that better serves the needs of users worldwide.