According to Fortune magazine, John Baumgardner, chief executive of US parking operator Ace Parking, recently wrote in an e-mail detailing the impact of increased demand for car services such as Uber and Lyft on the car park business . Baumgartner’s prospects are bleak, at least for those with rental car parks.
Baumgartner claimed in a company report that hotel parking demand in San Diego has dropped 5% to 10%, while demand for restaurant parking has dropped 25%. There is no doubt that the most affected parking business for the call-receiving service is the nightclub, where valet parking demand has dropped by 50%. All of these numbers seem to be estimates, and Baumgartner does not have a time frame for a drop in parking demand.
The assessment released in September 2017 is also limited to San Diego, but Ace Parking executives said the company saw a “similar” drop in 750 parking lots across the United States. The company focuses on the use of technology, including better parking arrangements and booking options to maintain business operations.
However, compared with the decline in parking business revenue, cities will benefit greatly from the drop in parking demand. Parking and parking are less taxed or economically active than commercial operations, and the expansion of parking operations can actually hurt the economy of cities like Los Angeles.
Even in 2015, cities have begun to relax zoning requirements and set minimum parking quotas, and there are even more signs that urban planners have changed their mind about parking. Perhaps most notably, there may not be a parking lot for the Manchester United stadium planned for David Beckham’s Miami expansion but the pick-up area will be designated for Uber and Lyft.
Only when the driverless car popularizes, the parking reduction will accelerate. This change will make it easier for people to find parking spaces far away from the city and further reduce the car ownership rate. This is bad news for operators such as Ace Parking, but everyone else should welcome the decline in urban parking.