Parking as a Service: The emerging business model  in smart cities

Cities are growing, and so is the number of private vehicles. This means that managing parking has become one of cities’ prime challenges. It is becoming increasingly difficult to find a free place to park, especially in historic city centers, and it is taking more effort for both drivers and the city government. Given this situation, the concept of Parking as a Service (PaaS) has become as an alternative to the traditional model.

How parking is evolving

Traditional parking

Traditionally, parking in cities all over the world has been viewed as a static infrastructure, where drivers look for and park in available spots on streets and in public or privately owned garages. However, this model is no longer efficient, so cities have to grapple with a high demand for parking and problems like traffic congestion, pollution, and high stress levels.

Smart parking

The use of advanced technologies has left behind the form of parking we were acquainted with and replaced it with smart parking. These technological innovations allow for better management of available spaces and improve the drivers’ experience, who no longer drive blindly through the streets, but make informed decisions thanks to the real-time parking data provided by these systems.

Parking as a Service (PaaS)

While smart parking represents a major breakthrough in the management of limited parking in many cities, we are gradually seeing the Parking as a Service (PaaS) model go a step further. It combines smart parking technologies with more connected solutions to offer a service that adapts in real time and more specifically to the needs of both users and cities to provide an even more comprehensive solution.

Key technologies in Parking as a Service

Internet of Things (IoT)

IoT-equipped sensors connect in real time to monitor parking pot availability and occupancy and to collect other relevant data such as parking duration and usage patterns. This information is crucial for providing users with customized services.

Artificial Intelligence (AI)

AI algorithms are able to identify patterns and trends by analyzing huge amounts of data. This makes it possible to adjust prices in real time and recommend the best parking spots to users based on their location and needs, which in turn optimizes both the user experience and the system’s efficiency.

Big data analysis

By allowing us to collect and analyze information from a variety of sources, big data gives us a comprehensive view of how users use parking spots in the city. These data are crucial for managers and businesses, since they allow them to make informed decisions for resource allocation, urban planning, and new infrastructure development.

Benefits of Parking as a Service

Parking optimization and less traffic and pollution

Parking as a Service, like smart parking, optimizes the management of available parking spots in the city, reducing the need to build new infrastructure by making better use of what already exists. This frees up urban areas for other more productive uses and tackles the main problems: the search for vacant spots that contributes to congestion and environmental pollution. By providing real-time information on the availability of parking spots, PaaS is able to reduce the time drivers spend circling the streets looking for parking.

Guiado de parking urbano

Urban parking guidance

Reduce the time spent searching for street parking in urban environments and the congestion that arises from it by guiding drivers to available parking spaces.
read more

Better user experience

Parking as a Service makes it easy to find available parking spots, reserve them in advance, and make payments via mobile apps. This significantly reduces the stress and frustration associated with the prolonged search for parking.

New business model generation

The PaaS model also opens up new business opportunities. Cities can centralize parking management, enabling continuous optimization of urban infrastructure and offering new revenue streams and innovative services.

The future of Parking as a Service

Integration with Mobility as a Service

One of the most envisaged trends in smart cities is the integration of Parking as a Service with the concept of Mobility as a Service (MaaS). This latter model proposes an even more seamless connection between different modes of transportation, while centralizing services and expanding mobility options for users.

Impact of self-driving vehicles

The possible arrival of autonomous vehicles that are capable of parking or moving around on their own would completely change the management of parking spots. To adapt to this new reality, the PaaS model will need to implement initiatives such as remote parking areas and automated charging stations.

Sustainability and social responsibility

In addition to promoting the responsible use of urban resources, PaaS could help prioritize parking spots for electric vehicles, which would encourage the use of cleaner technologies, or facilitate the use of public transportation networks, among other measures.

The Parking as a Service (PaaS) model is presented as a next step in smart urban management and the way citizens interact with their cities. This approach combines technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics to optimize the use of parking spots, improve user experience, and reduce congestion and pollution in cities. PaaS also opens up new opportunities in parking management by addressing not only immediate problems but also adapting to new trends for more sustainable urban development.

¿Want to know more about Smart Cities?

Contact us and discover how we can help you.

Contact