Lyft and Uber Disturbing $100 Billion Global Parking Industry

Parking giant, Ace Parking, a family-owned business based out of San Diego, has reported a drop as great as 50% from the typical numbers of vehicles parked while individuals visit nearby nightclubs, and even 25% less patrons are parking while eating at restaurants.

Fortunately, implications for consumers may turn out to be a drop in the price of parking. In San Diego in particular, the parking policy is being updated this year and this movement may require a decrease in the building of additional parking garages. Paid parking giants may find that lowering their prices may be the only way to get more cars to park with them.

Implementation of Technology

Parking companies that are experiencing a major decline in revenue can choose to install high-tech measures into their facilities, and programs exist that tell patrons where available parking spots are. Another high-tech advancement parking garages are making is giving users the chance to complete payment from their phone or computer. Parking giants are expectant that if patrons are aware that there is guaranteed and simple parking in the garage, people will see that parking within the garages may be worth it after all.

The task of locating a parking spot within an available garage may become more appealing if people knew they would have a spot waiting and they would not have to drive around several times looking for one. The leadership of Ace Parking believe that the very way people think about parking could be shifted, as their decision-making process would include prior to leaving for their destination, they would ensure they have reserved a parking place.

However, the ownership particulars may obscure the matter even further. It can be difficult to designate who should provide payment for technology upgrades, the operator or owner of the property? Each parking structure is built in a different manner, and details of operation are not always the same in regards to ownership and business structure.

Parking Industry Competition: Ridesharing Services

While parking garages may be finding it difficult to pay their bills, increased reliance on Uber does have many benefits for the general public. “More evidence is needed, but the trend appears to be that Uber and Lyft are decreasing occurrences of intoxicated driving,” remarked John Tumelty, DUI lawyer in New Jersey. Ridesharing companies completely take the possibility of drinking and driving away from patrons.

Beginning with San Francisco, many prominent cities have reported a decline in intoxicated driving incidents, the New York City boroughs in particular found a 25-35% decrease in alcohol-related vehicle accidents after Uber came to the market. With such a substantial reduction, the movement to include ridesharing services in typical methods of transportation may become common practice.

Despite the dramatic shifts in the parking and ridesharing industries, it is clear that patrons are seeking convenience and lower costs. Parking garages that can lower prices will likely still succeed, but those who can’t may be pushed to the wayside.

Melissa Thompson writes about a wide range of topics, revealing interesting things we didn’t know before. She is a freelance USA Today producer, and a Technorati contributor.