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What would be the expense for Google Maps to collect Street View data for the entire Manhattan area?

Approach / Explanation

This scenario serves as a classic example of a Fermi problem, which involves estimating and simplifying what may appear to be complex issues. You're tasked with making an informed guess regarding the expenses associated with Google compiling Street View data for the entirety of Manhattan. To effectively tackle this question, it would be beneficial to divide the overall task into smaller components and make logical assumptions or estimations for each one. Important considerations might include: Assess the total square mileage of Manhattan, acknowledging that Google Street View cars would need to cover each square mile. Estimate likely costs for fuel, equipment (such as the vehicle and Street View camera system), labor (how many drivers are needed?), and additional expenses (like vehicle maintenance and insurance). Additionally, there could be administrative and processing costs associated with data storage and management, rendering the data, and integrating it into the Google Maps platform.

Suggested Answer

Assuming that Manhattan covers an area of roughly 23 square miles and it requires about 8 hours to completely map out a square mile using a Google Street View car, we can begin to estimate labor expenses. If drivers are compensated at a rate of $20 per hour, the total driving costs would amount to approximately $3,680 (23 miles * 8 hours/mile * $20/hour). In addition to labor costs, we must also factor in expenses for equipment and maintenance. Let's assume that a Google Street View car, which includes camera equipment, costs $60,000 and has a lifespan of about 5 years. Given that each vehicle can cover 2 square miles per day, we would require around 12 cars to capture all of Manhattan in a single day. This results in an initial investment of $720,000. However, considering the 5-year lifespan of these vehicles, the amortized daily cost is roughly $394 (720k/(5*365)). Fuel expenses must also be included in our calculations. If a car averages 15 miles per gallon, it would consume approximately 1.33 gallons to cover one square mile (accounting for some backtracking, etc.). With gas prices at about $3 per gallon, the total fuel costs would be around $95 per day for the entire area of Manhattan (23 miles * 1.33 gallons/mile * $3/gallon). In conclusion, the estimated total cost to gather street view data for all of Manhattan in just one day could be around $4,169 (labor $3,680 + equipment $394 + fuel $95).

Alternative Answer

From a different perspective, we can begin by estimating the overall length of streets in Manhattan. It is estimated that there are roughly 500 miles of roads in the area. Surprisingly, Google Maps vehicles travel at an average speed of only 10 mph. Therefore, covering the entire 500 miles would take approximately 50 hours. If they operate for 10 hours each day, this amounts to 5 days of work. Assuming drivers are paid $20 per hour, the total wages would be 50 hours multiplied by 20, resulting in exactly $1,000. Next, we should factor in fuel expenses. With an average fuel efficiency of 25 miles per gallon for a light commercial vehicle and a current fuel price of about $3 per gallon, the fuel cost would amount to an additional $60. Finally, we need to consider the price of the vehicle and its advanced panoramic camera technology. Generally, these vehicles cost between $40,000 and $80,000 when all equipment is included. They can easily endure over 150,000 miles of driving, so when the cost is spread out over their expected lifespan, it becomes relatively low. Taking all these factors into account, the total expense for Google to map all of Manhattan would realistically be around $1,100, which includes all personnel, equipment, and overhead costs.

Question Details

Difficulty & Category

Medium
estimation

Companies

Google

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