According to Gizmodo, Google is working closely with Apple to deliver this app in the future to the iPhone. Google's GPS navigation will take advantage of Google Maps, hybrid and Street View images.
When Android 2.0 ships in November to consumers, the Google GPS mobile application will offer a fantastic feature list including traffic data. Traffic data will notify users of accidents and slow traffic on major highways. The cloud map network, which will be constantly updated, will offer the latest reports on highway traffic flow, using data from department's highway cameras and from cell phones using Google Maps.
Google's GPS application will offer cached maps, so users will still find their way, even if they lose Internet connection. There isn't any route planning for multiple destinations built into the mobile service, but you can search for points of interest along the way including gas and restaurants.
Google's GPS will offer a many more advantages over current devices, including showing satellite view of the overhead and a hybrid overlay with street names. The device will also offer a street view hybrid overlay with arrows when you're supposed to turn or at your final destination.
If the Google GPS releases for the iPhone in the near future, it will definitely ruffle some feathers with developers, who are selling similar applications for upwards of $50.