startups

‘Dramatic growth’ driving Australia’s parking tech – The Age


The world of parking tech has quietly grown over the past decade in Australia, with more than ten car stacker providers helping to design and import parking robotics across the country. Countless other startups are in the game of helping companies and councils manage how people utilise their spaces.

The smart parking sector is set to grow to $US43 billion ($61 billion) by 2025, according to Statista estimates.

The entrepreneurs at the forefront of this boom are facing up to the changes in how we travel and commute, including a future where driverless cars are looming.

Then there’s nerves about about parking technology safety, with high-profile stories about break downs in the equipment and the havoc that causes. 

Car Stackers International provides a range of systems including lift parking where users park their car on a platform and then let a mechanical arm place it above other vehicles.

Do they break down? Occasionally, McHugh says – just like any other mechanical item.

“Comprehensive” training and induction programs have helped countless drivers to feel comfortable operating the systems, though, with the company offering quick on-site service callouts if there are troubles with a car.

Now with thousands of units in operation across the country, the business has become a multi-million dollar operation that is ready to ride the wave of more robot stackers.

Rise of the “casual parker”

While residential parking spaces find new heights, the game is changing in the office car park and other entrepreneurs are ready to cash in.

“I think parking is very emotive — what we’re trying to take away is that need for one car spot for one person,” says co-founder of Sydney startup BaseUp, Jack Perkins.

The startup operates on the idea that less than three quarters of office parking blocks are actually used during the working day. Corporate clients need a system to use that space better in a world where flexible work means many staff might only be in the office for a few hours each day.

BaseUp co-founders Alex Peck (left) and Jack Perkins.

BaseUp co-founders Alex Peck (left) and Jack Perkins.

“Ten years ago, parking was huge – everyone had their parking spot. Now, we’re seeing tenants almost push park on parking,” Perkins says.

The company is just on two years old and has raised $1.5 million across two rounds for its software platform which matches staff to available parks and shows companies where they can rent out extra space.

As it starts to generate revenue, Perkins is anticipating more clients will be interested in the tech because office workers’ need for a full days’ worth of parking is evaporating.

“It’s about that flexibility and being casual,” he says.

The future looks driverless

Those that have watched the parking tech space for decades say the disruption won’t end here.

“In the future, up to 80 per cent who own cars today will not own cars. In apartment buildings, while they might need two parks for an apartment today, in ten years’ time they might be lucky to even need 20,” says director of Hercules Car Parking systems, Terry Smith.

Smith is anticipating startups will have to move from technology that stacks cars to brand new options for accommodating driverless vehicles and lower rates of car ownership.

Hercules is looking across the globe for new trends in the space and says it has 12 different international distributors it sources from.

The multi-million dollar business has previously come under scrutiny from The Age and Sydney Morning Herald for use of workers from China to work on car park stackers.

The company says it has a rigorous process of assessing suppliers and supply chains.

Smith says car stacking technology has changed how apartments have been built and in the process allowed several companies, like his, to build revenue beyond the million dollar mark.

“It’s meant for developers that they’re buying sites that they wouldn’t have even thought about,” he says.

Even with driverless vehicles on the horizon, the number of parking robots emerging is significant compared to even ten years ago, he says.

“Today we have 52 different systems – and we do a lot of the design work ourselves.”

Follow MySmallBusiness on Twitter, Facebook and LinkedIn.

Emma is the small business reporter for The Age and Sydney Morning Herald based in Melbourne.

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