Photo: Bogdan Popa/autoevolution
The health crisis that took the world by surprise in 2020 produced a major impact on almost every little part of the tech industry, including mapping software.
Citymapper, which was created more than a decade ago to provide users with a way to travel more effectively (first in London and then in so many other cities), is just living proof in this regard.
And it’s all because the company’s losses have reached a record level in 2021, mostly fueled by the collapsing number of users.
Because most people were recommended to work remotely, using Citymapper, often considered a top alternative to Google Maps, no longer made much sense for the majority of users. As a result, the company recorded rapidly declining revenue, with 2020 itself generating losses of 6.3 million British pounds (for our American friends, this means the company lost $7.5 million in just one year).
The whole thing then got even worse, with Citymapper reporting losses of £7.4 million (nearly $8.9 million) in 2021, once again because of the restrictions and the dropping interest in apps that allowed people to travel more efficiently.
And yet, while this is awful news for Citymapper, the company seems very optimistic that it can recover in the future, particularly thanks to its money-making ideas.
In London, for example, the company launched a subscription-based travel card, essentially giving Citymapper Pass customers the option to travel in Zones 1 and 2 without any kind of limits.
Google itself previously acknowledged the impact of the health crisis on Google Maps usage, explaining that its traffic patterns have pretty much been ruined by the restrictions that went in place all over the world. This meant Google Maps could no longer rely on traffic history data to accurately predict the changing traffic conditions, with the company then investing in new-generation solutions, including AI and machine learning, in order to keep Google Maps relevant in the “new world.”
Now that the traffic levels have returned to pre-2020 conditions, and most countries have already lifted their restrictions, navigation apps are once again becoming a must-have companion for everybody out there. Citymapper says the last few months of 2021 generated all-time engagement, especially as people were allowed to travel freely once again.
Whether or not Citymapper will manage to turn this increasing appetite for traveling into a money-making machine is something that remains to be seen, but there’s no doubt the company will continue to bet big on exclusive ideas that set it apart from the crowd. Last year, for instance, Citymapper, which has never made a profit, rolled out a total of 65 app updates, including innovative features, such as support for navigating through sheltered walkways in Singapore and accurate station transfer times and step-free information in Madrid.
And it’s all because the company’s losses have reached a record level in 2021, mostly fueled by the collapsing number of users.
Because most people were recommended to work remotely, using Citymapper, often considered a top alternative to Google Maps, no longer made much sense for the majority of users. As a result, the company recorded rapidly declining revenue, with 2020 itself generating losses of 6.3 million British pounds (for our American friends, this means the company lost $7.5 million in just one year).
The whole thing then got even worse, with Citymapper reporting losses of £7.4 million (nearly $8.9 million) in 2021, once again because of the restrictions and the dropping interest in apps that allowed people to travel more efficiently.
And yet, while this is awful news for Citymapper, the company seems very optimistic that it can recover in the future, particularly thanks to its money-making ideas.
In London, for example, the company launched a subscription-based travel card, essentially giving Citymapper Pass customers the option to travel in Zones 1 and 2 without any kind of limits.
Google itself previously acknowledged the impact of the health crisis on Google Maps usage, explaining that its traffic patterns have pretty much been ruined by the restrictions that went in place all over the world. This meant Google Maps could no longer rely on traffic history data to accurately predict the changing traffic conditions, with the company then investing in new-generation solutions, including AI and machine learning, in order to keep Google Maps relevant in the “new world.”
Now that the traffic levels have returned to pre-2020 conditions, and most countries have already lifted their restrictions, navigation apps are once again becoming a must-have companion for everybody out there. Citymapper says the last few months of 2021 generated all-time engagement, especially as people were allowed to travel freely once again.
Whether or not Citymapper will manage to turn this increasing appetite for traveling into a money-making machine is something that remains to be seen, but there’s no doubt the company will continue to bet big on exclusive ideas that set it apart from the crowd. Last year, for instance, Citymapper, which has never made a profit, rolled out a total of 65 app updates, including innovative features, such as support for navigating through sheltered walkways in Singapore and accurate station transfer times and step-free information in Madrid.
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