Nathan Heddleston: Inside the Business of Parking and Transportation

In this piece, we will discuss the basics of the parking business, along with many other factors that it consists of. This would include the role of technology, challenges, its future and much more.

By the end of this piece, you’ll have a clear idea of what the business consists of and how to get into it.  

Let’s get started then?

The Basics of Parking and Transportation Business

On the surface, it’s one of the most AI-proof businesses on the planet (keep reading, I’ve explained why that’s the case in the later sections). 

It’s simply being able to provide space to drivers and their vehicles. Of course, the business itself consists of dozens of other factors. 

It’s these factors and their technicalities we will discuss throughout this piece. No, it’s not as simple as “I’ve land, I’ll park cars” but it’s also not as hard as sending rockets to mars. 

The Role of Technology 

No business on the planet can thrive today without the use of technology. Fortunately, for the parking business, a number of technologies already exist ready to help with your business. 

The first of course is real-time parking information. Vehicle owners can get information on parking spot availability, location and other details directly.

Secondly, automated recognition of number plates along with entry/exit times reduces human contact and may be preferred by many.

Of course you can also automate payments using different modes instead of relying on cash. 

How about dynamic pricing? You can ensure the pricing is automatically adjusted depending on demand. Peak hours get you more money while ensuring you stay occupied by lowering your prices when demand is lower. 

Then you can utilise tech for reports. Generate ultra-detailed reports regarding total revenue, hours used, types of vehicles and literally anything else your software supports.  

Challenges in the Industry

Vehicles are “big objects” to put simply. Storing them efficiently requires proper planning and management. This is what gives rise to some of the most common challenges in the parking and transportation industry.

For starters, you need to find a space that’s good in size, is at a desirable location and then it must comply with all the legal requirements needed to commercialise it as a parking space. 

Once you’ve found a location that checks all the boxes, the next challenge is proper planning. How to maximise parking space and hence your revenue, while also keeping it comfortable for drivers?

You also need to know how to balance innovation with your budget. We discussed the role of tech earlier, but implementing tech requires money. Which technology to implement, which to skip and how best to do it defines your overall investment and hence your profit margin.

Oh and security is a major concern. These are high-ticket items, prime targets for thieves and robbers.This again needs proper addressing either via tech or manned security personnel.

The Need of Parking and Transportation

What’s the fastest disappearing asset on Earth? That’s real-estate, or “land” to be specific. With each passing day, it’s harder and harder to find space to park your vehicles. To add to the problem, the world is purchasing more and more cars with each passing year. 

This is what establishes the fact that it’s one of the best times to get into the parking and transportation industry. The stat above literally proves that the demand for parking spots will only increase with time. 

On top of that, people are willing to pay extra for the added security and convenience of parking in contrast to parking their expensive vehicles on streets even if it’s free.

How can we ignore the AI revolution? While AI may overtake nearly all jobs on the planet, one of the things it can’t do is “create land”. Another reason why this opportunity is ripe for the grabs, isn’t it?

Answers to your questions 

If you’ve read this far, it’s natural for you to have a few questions regarding parking and transportation. Allow me to answer a few of them.

How do I start with a parking and transportation business? 

I’ll advise getting a mentor or someone with experience. This is primarily because they’ll have knowledge on the type of facility you need (lot/ garage/ valet etc.), locations, investments you should make or avoid and much more.

They also generally have contacts with brokers, software companies and others which may lower the initial investment for you.

Legalities, marketing strategies and many other factors are better understood by someone with experience as well. 

Does parking and transportation have a future?

Yes. Two reasons, as explained earlier, decreasing land and increasing vehicles. Both of these are problems that probably aren’t getting solved anytime soon, hence, boosting the parking business. 

How do parking and transportation benefit cities?

Planned parking benefits a city on multiple fronts. For starters, it reduces chaos and decreases frustration for drivers. Streets look cleaner and better organised. This translates into less accidents and just better transport overall.

Of course, due to the added security, theft, vandalism and other crimes are reduced that improve tourism, economy and almost everything else about the city. 

Conclusion

I hope you’ve got a decent idea regarding the parking and transportation business, haven’t you?

Of course there’s a lot more to it. This would include taxes, legalities, city permits, marketing, management and what not. 

Well, fortunately, the internet is a treasure trove when it comes to information or of course you can directly get in touch with someone who has experience. 

Lastly, I’d just say if you’re looking into a new business, it’s one of the most AI-proof models existing right now.

About the author

This piece was compiled by Nathan Heddleston. He’s a senior manager with experience in parking and transport, and has given great importance to this industry. He states that good parking systems are well managed for city infrastructure. He says further that integration of technology in parking services will also give a significant boost to the efficiency and user experience of the system. His experience reflects the impact this industry has. Success lies in management.