Unveiling The Cost of Developing a Parking App Like SpotHero
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Jignesh Nakrani - February 05, 2024
- 6 min read
For years, city dwellers have struggled with the age-old problem of finding parking. It’s a headache we all want a solution for. That solution? Smart parking software solutions. Imagine a world where getting a parking spot is as easy as a snap of your fingers. Well, that’s the world we are aiming for.
A recent survey found that a normal car stays parked for about 23 hours daily and uses many parking spaces weekly. Source: Business Wire The survey also checked how much time drivers spend daily hunting for a parking spot. The results? Let’s just say, it’s a real eye-opener as far as the smart parking market is concerned. Since there were endless parking problems like locating vacant parking spaces, costs, and multiple parking rules yet this problem was solved by a parking app like SpotHero.
According to a GlobeNewswire report, the global smart parking market was valued at $5.23 billion in 2021 and is expected to reach $16.54 billion by 2030 at a CAGR of 13.6%.
The smart parking market is a rapidly growing and evolving market with a bright future. And making parking apps is a hot trend. If you’re thinking of creating a parking app like SpotHero and want to know how much would it cost, you’re in the right place.
In this blog, we will provide you with the estimated cost to develop SpotHero-like parking app along with the key features you can add to your app.
About SpotHero App
SpotHero is a digital parking marketplace that helps drivers find and reserve parking spots in advance. It is available in over 300 cities across North America and has over 10 million users.
Started by Mark Lawrence and Jeremy Smith, SpotHero is a leader in the parking management market in the U.S. It caters to millions through its convenient mobile app (available on Android and iOS) and website. The company collaborates with garage owners, vacant lots, and valets to offer parking spaces to drivers nationwide in the United States. The app’s feature allowing users to reserve parking spots helps alleviate congestion and reduce pollution by avoiding the need to circle densely populated city centers.
Problems Solved by Parking App SpotHero
• Save Time for Busy Users
A parking reservation mobile app like SpotHero addresses the pervasive problem of parking frustration by providing users with real-time information on available parking spaces. This eliminates the stress and irritation associated with circling busy areas in search of an elusive parking spot.
• Time and Fuel Savings
It eliminates the need for aimless driving in crowded urban centers, contributing to a more efficient and environmentally friendly transportation experience.
• Optimized Space Utilization
The app optimizes parking space utilization by connecting drivers with available spots. This not only benefits users but also assists parking facility owners in efficiently managing their resources.
• Traffic Congestion Reduction
With reserved spots and efficient navigation to available spaces, drivers spend less time on the road searching for parking, leading to improved traffic flow and a decrease in overall congestion.
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Monetization Strategies Employed by Parking Apps
Parking finding apps employ various monetization strategies to generate revenue. Here are some common ways these apps make money:
- Parking Fees: This is the core revenue stream, where users pay a fee directly to the app for booking a parking spot. This fee can be a fixed amount, or vary based on factors like location, duration, and demand.
- Transaction Fees: Many parking apps charge a transaction fee for each successful parking reservation or transaction made through the platform. This fee is usually a percentage of the total parking cost.
- Subscription Models: Some parking apps offer premium subscription plans with additional features, such as priority booking, exclusive discounts, or access to premium parking locations. Users pay a monthly or annual subscription fee for these enhanced services.
- In-app advertising: Displaying targeted ads within the app can generate additional income without directly impacting user experience.
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Key Features of the SpotHero Parking App
A great parking app can be a lifesaver, helping you avoid circling the block and wasting time. To stand out, your app should consider these features:
• User/Driver App Features
- Quick Sign up: Users can easily create an account with multiple registration options like phone number, Gmail, or social media.
- Search and filter: Allow users to search for parking by location, price, type, and parking facility.
- Find Your Parking Spot: Use GPS tracking to locate the nearest available parking spot or mark where you parked your vehicle for better navigation.
- Set Arrival and Departure Time: Plan your parking by setting arrival and departure times to find optimal spots within your specified timeframe.
- Various Payment Options: Choose from multiple payment options such as credit/debit cards, mobile wallets, in-app payment, or cash for added flexibility and user comfort.
- Live updates: Inform users about real-time changes in parking availability, traffic conditions, and parking restrictions.
• Parking Space Owner Features
- Adding New Parking Slots: Allow space owners to add new parking slots for users to easily book.
- Payment and Billing: Conveniently manage payments with various options and keep track of billing details.
- Reach Customer: The space owner can contact the customer via in-app call or chat anytime if required.
- Parking History and Favorites: Access your parking history, and mark favorite spots for quicker and easier future bookings.
- Feedback Management: The space owner can manage user reviews to improve the services and performance of the app.
• Admin Panel Features
- Seamless Dashboard: The admin can access a powerful dashboard and analytics interface for tracking financial performance and making informed decisions.
- User Management: Efficiently manage and monitor user profiles, ensuring accuracy and responsiveness to user-related activities.
- Manage Parking Space: Exercise control over the availability of parking spaces, updating their status based on real-time occupancy data.
- Real-time Occupancy Updates: Keep users informed by regularly updating the occupancy status of parking spots, and providing accurate and timely information.
- Booking Data Administration: Effectively manage and oversee booking data associated with various parking areas, ensuring seamless user experiences.
- Expansion with New Parking Locations: Facilitate the growth of the application by easily adding new parking locations, and expanding coverage for users.
- Discounts and Offer Management: The admin can manage the offers and discounts to attract new customers.
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Steps To Develop a Parking App Like SpotHero?
Here are the key steps that are needed for car parking app development like SpotHero.
Step 1: Competitor Research and Planning
First of all, you have to do thorough research to understand your competition and know more about the market trends. You have to plan the unique selling points of your app and create a comprehensive development strategy. Begin with questions like:
- Who is my target audience?
- What challenges do users face in finding parking spots?
- What features do successful parking apps offer?
- How can your app address users’ pain points effectively?
Step 2: Define Key Features
Determine the core features of your parking app. Consider features such as GPS-based spot tracking, reservation options, secure payment gateways, user-friendly interfaces, and effective search functionalities.
Step 3: Choose the Right Technology Stack
Select the appropriate technology stack for your app, including the development platform (iOS, Android, or both), programming languages, and frameworks.
Step 4: Development and Testing
Develop the app according to the planned features and design. Regularly test the app during the development phase to identify and address any issues promptly.
Step 5: Launch and Marketing
Once development and testing are complete, launch your parking app on the chosen platforms. Gather user feedback and continuously update the app to enhance its functionality and user satisfaction.
How Much Does It Cost to Develop a Parking App like SpotHero?
It’s not easy to say a specific amount for building a parking app like SpotHero because there are many things to consider. The cost to develop an app like SpotHero depends on different factors that all come together to determine the total price.
To give you a basic understanding, let’s talk about these factors that contribute to the overall cost of SpotHero like parking app development.
- Features and Functionalities: The more features your app has, the more complex it will be to develop, and the higher the cost. Basic features like searching for parking, booking spots, and making payments are essential, but additional features like real-time availability, navigation, EV charging station integration, and valet booking will increase the price.
- App Complexity: Advanced features in an app require skilled developers and more development and testing time.
- App Platform: Developing for both iOS and Android will be more expensive than just one platform. Consider your target audience and their preferred platform.
- Team Size: Developing an app requires a team of experts working together. A larger team or choosing between freelancers and dedicated development companies affects the overall cost.
- Company Location: The location of the development company influences the cost, with hourly rates varying between regions. Developing the app in countries like the US is more expensive compared to Asian countries like India.
Taking into account the various factors influencing overall development costs, the estimated price to develop a parking app like SpotHero would range from $20,000 to $30,000 or more.
If you are a startup with a limited budget and time, you can consider the SpotHero clone app for a quick launch.
Wrapping up
The future holds great opportunities for the development of car parking apps, making it a promising venture. If you are considering parking finder app development, it could prove to be a lucrative decision in 2024 but understanding the costs involved is crucial. Carefully consider your target audience, desired features, and budget before hitting the gas. With meticulous planning and the right development team, you can turn your parking app dream into a reality! XongoLab with its team of proficient mobile app developers and creative UX/UI designers can help you build your dream application.
Jignesh Nakrani is the Co-Founder and Operations Director at XongoLab Technologies LLP. He channels his interests into researching cutting-edge technology and the latest trends in business to create content related to the web and mobile to help startups & entrepreneurs scale their businesses and grow.
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