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From Wazeopedia

Routing server

47 bytes added, 6 years ago
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Real-time current road speeds: minor wording changes
We can be confident that Waze uses real-time reports of current road speeds by preference over historical average road speeds. We know that Waze uses traffic congestion reports to reroute around slow traffic. Early versions of the client would also report when traffic speeds were good - this was removed due to map clutter. But Waze will still be receiving this information. We can assume that the speed of any wazer ahead of you on a stretch of road will be the speed used when your route is calculated.
As the number and density of wazers Wazers grows this real-time data takes on a greater importance. This emphasis is partly a reflection of Waze's original goal to optimise create optimal commutes. As Waze has grown to be used as a more general purpose GPS navigation device over roads less travelled, the historical average road speeds becomes more important. Since Waze uses the time you expect to be at a road segment to calculate the expected speed on that segment, it cannot use real time data when you trip time moves into a future time slot. So trips of more than 30 minutes (and on average more than 15 minutes) will include future time slots where current traffic data is not available when initially calculated. When you enter a new time slot, real-time traffic data may be available which may cause your client to recalculate your ETA and reroute you at that point.
Since Waze uses the time you expect to be at a road segment to calculate the expected speed on that segment, it cannot use real time data when you trip time moves into a future time slot. So trips of more than 30 minutes (and on average more than 15 minutes) will include future time slots where current traffic data is not available. When you enter a new time slot, real-time traffic data may be available which may cause your client to recalculate your ETA and reroute you.
==Fastest routing==
Waze knows the average speed of every confirmed road between you and your destination. The Waze server can calculate which list of roads to take to minimize the total travel time.
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