We’ve known for a while now that Google has been interested in Fitbit and now it’s official. On a blog post, Google SVP of devices and services Rick Osterloh announced that the tech giant was purchasing the Fitbit wearable tech company for $2.1 billion.
Once the purchase goes through, Fitbit will be wholly under Google and will not be treated as a separate entity. If you’re like me, you’re probably wondering if Google’s intent is to use the fitness tracking data it gathers from Fitbit devices and monetize it. Well, in a post by Fitbit, the company stated that it takes privacy for health and fitness data seriously and that the “Fitbit health and wellness data will not be used for Google ads.” Despite both Google and Fitbit asserting that health & tracking data won’t be used for ads, many remain suspicious.
The fitness tracking market has become increasingly crowded over the years, with major players such as Apple and Huawei joining the fray. Many early fitness tracking tech pioneers like Jawbone and Pebble were either swallowed up by larger companies or simply disappeared altogether. Apple currently dominates the global smart watch market with a near 50% market share. Meanwhile Fitbit has struggled recently to compete with Apple, while Google has yet to establish a strong foothold in the market. With Fitbit’s wearables tech foundation and Google’s deep pockets the acquisition makes sense for Google. Only time will tell if Google is able to take a bite out of Apple’s stranglehold.
