Alphabet’s GOOGL division Google is consistently working toward adding innovative features to Google Maps.
According to 9TO5Google, Google has added a capability to Google Maps, which lets users know the most fuel-efficient route if they specify the vehicle’s engine type, whether it’s gas, petrol, diesel, hybrid or an electric vehicle.
Reportedly, Google used insights from the United States Department of Energy’s National Renewable Energy Laboratory and the European Environment Agency. GOOGL combined these data with Google Maps-driving trends and built advanced machine learning models trained on the most popular engine types in a given region.
The recent feature is rolling out in the United States, Canada and Europe over the coming weeks.
This apart, Google introduced eco-friendly routing to Maps to nearly 40 countries across Europe to highlight directions that use less fuel.
Users in European countries can view the ‘most fuel-efficient’ leaf badge on Google Maps, which shows the app-preferred route to reduce fuel cost and carbon emissions. They can disable this feature from the overflow menu on the directions page to use the fastest route.
The introduction of an eco-friendly route feature and the most fuel-efficient route on vehicle engine-type specification is expected to boost the adoption rate of Maps in the abovementioned countries in the days ahead.
Alphabet Inc. Price and Consensus
Alphabet Inc. price-consensus-chart | Alphabet Inc. Quote
Growing Google Maps Initiatives
The recent global initiatives bode well for GOOGL’s increasing efforts toward bringing innovative features for a clean and sustainable environment.
Earlier this year, the eco-friendly routing feature was rolled out in the United States, Canada and Germany.
Reportedly, Google has estimated to have removed more than half a million metric tons of carbon emissions since the feature was launched in the United States and Canada. This shows the growing adoption of Google Maps.
Further, Google added a widget to Google Maps, which updates information on nearby traffic at the user’s current location.
Additionally, Google introduced a feature to Searches and Maps, which shows “Identifies as LGBTQ+ owned” on the business profiles of sellers belonging to the LGBTQ+ community.
Google is also making efforts to show estimated toll prices for the planned routes on Google Maps to users of both Android and iOS.
All these endeavors will continue to strengthen Google Maps, helping Google drive momentum among its users. This, in turn, is likely to get reflected in the performance of the Google Services segment, which will benefit Alphabet’s overall financial performance.
Google Services generated $62.8 billion revenues (90.2% of total revenues) in second-quarter 2022, up 10.1% from the prior-year quarter’s level.
Moreover, strengthening financial performance will aid GOOGL in winning investors’ confidence in the near term. Shares of GOOGL have been down 24.5% in the year-to-date period, outperforming the Computer and Technology sector’s decline of 30.2%.
Rising Competition
Alphabet faces intense competitive pressure from another technology giant, Apple AAPL, which is witnessing solid momentum among customers on the back of its location-showing services.
Apple, which has gained 0.6% in the year-to-date period, offers its web mapping service named Apple Maps. It provides directions and an estimated arrival time for driving, walking, cycling and public transportation navigation.
Recently, Apple introduced a capability to its Apple Maps app for iOS 16 users, which lets them add multi-stop routing to the app.
Nevertheless, Alphabet’s consistent launch of eco-friendly features to Google Maps is expected to help it gain a competitive advantage over its aforesaid peer.
Zacks Rank & Stocks to Consider
Currently, Alphabet carries a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like ASE Technology ASX and Monolithic Power Systems MPWR, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ASE technology has lost 29.2% in the year-to-date period. The long-term earnings growth rate for ASX is currently projected at 23.1%.
Monolithic Power Systems has lost 13.4% in the year-to-date period. The long-term earnings growth rate for MPWR is currently projected at 25%.
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