It's no secret that Apple messed up big time with their own Maps app. Recently and most seriously, their app was found to have led Australian drivers into the wilderness. As a result, Australian police have warned drivers against using Apple Maps for navigation purpose. Left with no choice, Apple publicly apologized for the quality of the app and vowed to do better.
For some time now, Apple has been rumored to be interested in acquiring Foursquare. However, the problem with Foursquare is that it sees limited use outside of the U.S. Furthermore, there's not much to be gained with Foursquare. What good are "check-in" locations?
With that in mind, perhaps it is not surprising that Apple is turning to Israeli developers Waze and their social GPS app. Waze has been steadily gaining popularity throughout the world thanks to its unique functionality and blend of traditional GPS mapping and social media elements. And because Waze's maps are built based on drivers' locations, it is far more useful than just "check-ins". It is also the exact kind of data that Apple needs to refine its app.
According to rumors, Apple is presently offering Waze US$400 million and a further US$100 million in incentives. Waze, however, is holding out for US$750 million.