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Could anyone explain what the benefit might be to investing in an open source service like OpenStreetMap? This is a sincere question.

[edit] I know that the concept is brilliant, it's a great service, and has great potential. Will investors potentially build chargeable products that use it? Why not just invest more into their product to enhance it?



It's not an equity investment, it's a grant from a non-profit foundation.


Companies like MapBox, Stamen, MapQuest, and Bing, who have OSM layers, have an incentive to improve OSM data because it makes them competitive with Google; it eliminates the massive fixed/sunk cost of creating proprietary data and redirects the game into how you can use/distribute/mainstream that data. The business models for that are fairly clear; charging for services based on the data.


Makes sense! I didn't realize those companies use OSM. Thanks.


Google, for example, charges companies for (lots of) use of it's APIs. Maps and up to date, good quality data costs a lot.

Both are good reasons to invest in disruptive technology - to lower the cost in geodata - and to swap to a free mapping service.

See http://switch2osm.org for more case studies and information.




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