Establishing APIs as products
When we say that an API is a product, it means that the API is being offered as a standalone service or offering that can be consumed by external customers or partners. In other words, the API is not just a means to an end but also a revenue-generating product in its own right.
APIs as products typically have their own pricing, service level agreements, and terms of service. They are often monetized through a variety of models, such as a subscription-based, pay-per-use, or revenue-sharing model.
APIs as products can be used to create new revenue streams for a company by allowing third-party developers to access and use their data and services. They also enable companies to access data, functionality, and services from other companies, enabling them to build new products, improve existing ones, and drive new business opportunities.
APIs as products can be used in a variety of industries, such as e-commerce, finance, healthcare, transportation, and more. Companies in these industries can leverage APIs to create new business models and disrupt traditional ones.
An example of how APIs allow companies to offer their products and services is how Uber uses the Google Maps API for mapping, uses PayPal APIs to offer a convenient way of making payments, and uses Twilio APIs to allow drivers and riders to communicate securely.
Uber is a ride-hailing service that allows users to request a ride through a mobile app. In order to provide its service, Uber uses a number of APIs, including Google Maps, PayPal, and Twilio:
Figure 1.1 – Examples of APIs being used during a single ride using a ride-sharing application such as Uber
The Google Maps API allows Uber to access the Google Maps platform and use its functionality within the Uber app. This includes features such as real-time traffic information, an estimated time of arrival, and turn-by-turn navigation. This allows Uber to provide accurate pickup and drop-off locations, an estimated time of arrival, and the best route for the driver to take to the rider’s destination.
The PayPal API allows Uber to offer PayPal as a payment option to its users. By integrating with the PayPal API, Uber can securely process payments made through the app using the user’s PayPal account. This allows riders to easily pay for their rides without having to enter credit card information.
By using these APIs, Uber is able to offer a more seamless and integrated user experience. The Google Maps API allows Uber to provide accurate and up-to-date information about pickup and drop-off locations, while the PayPal API allows for a convenient and secure way for users to pay for their rides.
Twilio is a cloud communication platform that allows businesses to programmatically make and receive phone calls and send and receive text messages using its APIs. Uber uses Twilio to provide a way for drivers and passengers to connect without revealing their phone numbers.
When a driver accepts a ride, the passenger’s phone number is sent to the driver through the Twilio API, allowing the driver to call or text the passenger without ever seeing the passenger’s phone number. Similarly, the driver’s phone number is sent to the passenger through the Twilio API, allowing the passenger to contact the driver without ever seeing the driver’s phone number.
By using Twilio’s APIs, Uber is able to protect the privacy of its users by keeping phone numbers private. The Twilio API allows Uber to handle communication between drivers and passengers securely and efficiently. This way, it can enhance the user experience and help to improve the safety of the service.
To sum up, the use of the Twilio API allows Uber to use a cloud-based communication platform to connect drivers and passengers without revealing their phone numbers. This enables Uber to provide a more secure and efficient way of communication while protecting the privacy of its users.
Overall, the use of APIs such as Google Maps, PayPal, and Twilio allows Uber to access functionality and services provided by other companies, which they can then use to improve their own service and offer more features to their customers. This also saves them the cost of building any of these services by themselves while also reducing the time it takes to develop them.
Now that you have started to learn about how API products are making their mark, you will learn about different types of APIs in the next section.
