The location-based technology market has gotten busier with web services company Baidu's $10 investment in mapping service IndoorAtlas.
The investment was made in September and serves as a way to compete with companies that have developed similar software, such as tech giant Apple and Internet giant Alibaba, according to Investors.com. IndoorAtlas's software, often referred to as an "indoor GPS," observes changes in the Earth's magnetic fields caused by buildings, allowing smartphones to determine where a person is inside.
With this technology, cellphones can act as guides for shoppers trying to find their favorite products. The user knows where they are thanks to a dot that moves across a map on their phone's screen, and they are informed on how far they are from the item they want. IndoorsAtlas says the software is able to pinpoint the location inside a building within 6.5 feet.
The software can only work if it is used with other technology that provides deals, discounts and rewards to a tailored individual's smartphone that are based on where the person is in the store, Investors.com reported.
IndoorAtlas' work with the technology comes at a time when people are using their smartphones to shop more often. A report from the Pew Research Center's Internet and American Life Project claims that almost six out of 10 adults in the U.S. using their phones to buy products.
Wibe Wagemans, President of IndoorAtlas, said the company is currently having its "indoor GPS" tested by "two top retailers" in the U.S. and one in Europe, Investors.com reported.
He added that the company still has a lot of work to do for research and development before making the software commercially available, such as working with "partners around the world who can help us take this to market."
