Is Google Too Late with its New Location Based Latitude API?

Foursquare, Gowalla and a number of other startups have really taken location based technology to the next level, providing check-ins, reviews, recommendations, etc. Many of these companies have received a lot of publicity and either have venture capital funding or are in the process of raising venture capital, all in competition to break out from the quickly crowding pack and become the market leader. Recently coming onto the scene is software giant, Google, with its new Latitude API. Seemingly a little slow to market, Google’s location based Google Latitude was launched in May of this year and is already beginning to show a lot of promise as a more “passive” location based player.

At first it seemed like the Google Latitude was just another Foursquare copycat trying to cash in on the new “localization” trend. However, this may not be the case as Google Latitude — although the same in core technology — is targeting different developers with their API, and a different set of users and use case scenarios with its approach.

For one, Google is thinking well beyond your typical “check-ins”. Latitude is currently set up simply to show and save your coordinates at all times, really using your mobile device as a constant human tracking system. They do not advertise the finding of venues, friends or engaging with local businesses, all of which Foursquare and Gowalla pride themselves on. Although the former can be done with the Places API, Google Latitude is positioning itself as more of a utility and necessity than convenience or social networking opportunity. Some of the example apps that developers are creating on the Latitude API include:

• Linking your ATM/Credit card with Google Latitude. If someone tried to take out a large sum of money or purchase something with your card that was more than 500 feet from your phone, a fraud alert would be sent out and withdrawal/purchase would be terminated.
• Pictures/photo albums you took could be linked up and automatically tagged to the exact location they were taken by looking up where your phone was at the time.
• Websites like OpenTable or Fandango would automatically be updated and customized to your current location to deliver the most localized, personal user experience.
• For hourly employees, it could replace time cards and check ins.
• Thermostats and lights could automatically turn on or off depending on our arrival/departure from your home.
• Traffic alerts could be sent to you ahead of departure on routes you normally take.

Many of the above qualities will be very sticky with customers as they are practical and helpful solutions to every day problems. Although Foursquare and Gowalla are hugely popular (Foursquare recently announced that they have 1.7M users and adding 100,000 more a week — definitely in the expansion stage!), they are focused on social networking and communication. Sites like these are brilliant because individuals like to constantly track themselves and stay connected, ultimately allowing the sites to make money by selling the data they collect on your every move, likes, dislike, preferences, etc. to large marketing agencies who will serve very targeted, appealing ads based on your specific “criteria”.

Another issue Google Latitude wins on is privacy. On most location based devices like Foursquare, Loopt and MyTown, once you are linked to a user, they will get updates on where you are and what you are doing. Facebook Connect has also had huge issues with privacy. Originally, Facebook Connect built out an infrastructure that enabled third parties to gain access to your profile, which also gave them permission to view and download your social graph. Currently on Facebook Connect, each and every time you use an app you need to grant your permission to access all of your data, which is better, but has quickly become a hassle.

Google Latitude stores all of your location history in the cloud and lets third parties build out apps around your location history once you download the app. This way, all of your location information is stored and protected in one place, not to be downloaded and spammed across the web without your knowledge. This quality is becoming especially important in Europe and other places where privacy laws are much more strict — originating from the fact that important information is not to be shared across borders. Inherently, this also makes cloud computing very scary, but Google is a very trusted site and assures that their cloud is heavily protected.

In the long run, the Google Latitude API will be more sticky, stable and safe because it protects your location information in the cloud and is being marketed as a utility with your mobile device and as a delivery method, as opposed to a way to simply connect with friends. The apps will ultimately save time, money, and be more secure while still ultimately tracking your every move to help advertisers serve you the most relevant ads.