Parking apps are a big sigh of relief for metropolitan citizens, and we have all the right reasons to say so. Struggling to find a vacant spot to park your vehicle is a day to day scenario that one doesn’t need to imagine. Parking lots are nothing short of a maze, and the exponentially increasing number of cars in big cities only adds to the trouble. Finding a parking spot closest to the elevator is like winning a lottery. Moreover, remembering where you parked your car means this is one information that you need to hold in the back of your mind till you drive back home.
Finding a parking spot closest to the elevator is like winning a lottery
Addressing this issue is the need of the hour because not everyone looking for a parking spot is going for a movie. For some, it could be an urgent business meeting, or a medical emergency for others.
Issues Solved By Parking Apps
Hard to Locate Vacant Spots
This is the first issue solved by a parking lot app. Locating a vacant spot among hundreds of cars in an open space is not easy. And in case someone has an important task at hand, spotting a vacant space becomes even more troublesome.
A parking lot app that allots a spot and marks it on the GPS makes it easy for the car owner to locate the spot and park their car without breaking a sweat.
Multi Space Parking
Going through a confusing layout only to find a spot already occupied is troublesome, but finding out that some jackass double parked his car is a whole new level of angry. YouTube is full of double parking revenge videos that range from funny to downright shocking. And that’s because some intellectual minds believe their need for space extends in the physical world of a parking lot too.
With a spot allotted to a car, the parking lot staff would be able to inform the owner in case they double parked. This will lead to a more efficient parking lot with better space management.
Confusing Parking Rules
Different parking lots have their own set of rules. Some parking lots charge by the hour, some charge by day while some charge a certain amount for a particular time window, with additional charges per hour after that window.
A parking lot app in such a case will help car owners see know the kind of charging system a particular parking lot uses, taking unnecessary hiccups out of the picture.
How A Parking Lot App Works
There are primarily three ways in which a mobile app development company can create a parking lot mobile app for you:
Navigation Only:
Working merely on the space allotted, a mobile parking app of this kind will only tell you the whereabouts of a vacant spot. This is the bare minimum requirement that such an app can accomplish. The rest of the process, including paying for parking will be done the conventional way.
If a parking lot is full, the app also notifies the car owner when a spot is vacated and guides them to the same.
Navigation + Booking:
A more practical parking lot app will allow car owners to book a parking spot and pay for it according to the pricing format of the lot. It is a more time saving method and also makes the whole process more efficient.
Many parking lot apps work on this model. The car owner enters the vehicle number in the app and books a spot. When he reaches the parking lot, a sensor will read the license plate and feed it in the database. The app will then guide the owner to the dedicated spot. Parking fee can be paid through the app itself.
Virtual Valet:
A complete solution available on the go, such an app will make life easier than ever before. Car owners will be able to reserve a spot before reaching their destination, thus keeping parking chaos at bay. They can also set a time window when a valet will reach a pre-decided spot to get the car keys and get the needful done.
In the times when curbside pickup is a practical delivery method, a curbside valet is also a viable option where the car owner won’t need to even wait in the parking queue. The power of automation has made things quick and efficient.
Key Marketplayers
Parking app market is seeing a tremendous increase in the number of marketplayers. The most prominent names in this market are:
BestParking:
Powered by ParkWhiz, BestParking was founded by Benjamin Sann in 2005. The company recorded $2 million in revenue and recently acquired venture capital worth $25 million.
SpotHero:
Another parking reservation app that operates in US and Canada, SpotHero raised a venture fund worth $30 million in 2017.
Other notable names in this domain are ParkMe, Parking Panda, and city specific apps such as VoicePark (San Francisco), Chicago Parking (Chicago), and PrimoSpot (New York, Boston, Seattle).
Revenue Model
Customer experience and revenue generated while doing so are the greatest parameters that define the success of any business. Like many other Uber for X business models, on demand parking space mobile apps can also generate and grow revenue through following methods:
Commissions:
The core of every parking lot business, no matter how sophisticated or conventional the methodology is, lies in charging for the space acquired. This is how every parking lot owner earns. A parking lot app owner will charge a certain amount of the fee in commission and keep the wheel rolling.
Rewards Points:
Rewarding your customers for using your app frequently can help a lot in the long run. The more you reward your customers, the happier they will be to use your services.
Referrals:
Referrals enable your existing customers to enjoy discounts, while your business attracts more new customers. Given the fact that parking lot is a limited space, you’ll need to find ways to improve customer experience by giving them more buck for their money. One good way would be to give traffic update of the route and regular updates about the parking spot.
Premium Membership:
Give your premium customers a dedicated spot so they don’t have to search for a vacant space every time they enter a parking lot. This little gesture brings more bang for your buck in the form of increased revenue and improved customer experience.
Conclusion
The business model, market growth, revenue channels and customer experience, everything that revolves around parking apps paints a bright picture for the industry. The marketplayers we mentioned above are already churning big numbers. It’s now time for you to join the bandwagon, helping several cars find a spot with a tap on the mobile screen.
