Google Maps API Adopts 'Pay-As-You-Go' Pricing Model

By CIOReview | Monday, September 14, 2015
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FREMONT, CA: Google Maps API has now come up with a new solution on pricing, called as ‘Pay-as-you-Go’ model with clear defined strategy based on usage.

Services like Google Maps Geocoding, Directions, Distance Matrix, Roads, Geolocation, Elevation, and Time Zone APIs are useful in many applications for implementing various functionalities. In brief, Geocoding API helps in transforming street addresses to latitudes and longitudes; Directions API assists users to navigate from point A to point B in a given mode of transportation.

These services are freely delivered for the first 2500 requests per day. In case, if the developers require additional service, a fee of $0.50 USD is to be paid for requests up to 1000 to 100000 requests per API per day. The developers requiring more than 100000 requests per day may contact the company to avail a premium license.

Some API providers employ opaque pricing models that may restrict their reach for customers. Google formerly followed the opaque model; however, the advancement in pricing model is considered to be profitable for large businesses.

But the challenge associated with this new model is that the businesses may not be able to predict the usage initially, writes Patricio Robles in Programmable Web. The pricing model for different use cases may differ and deciding on one of the three options may not be simple for businesses.

As high-profile API providers like Amazon AWS, Twilio and now Google are moving towards pay-as-you-go concept, tiered pricing may create new market trend and developers may have to accept it.