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December 26, 2024
With the increase in population and automobiles, the demand of parking booking businesses has been at its peak. And no wonder parking booking management businesses are becoming an ideal business investment opportunity.
Trying your luck in this business means you step towards a permanent business launch. But do you need help deciding how to start parking IoT business?
This post will definitely help you build an ideal solution for your parking management business idea. Below, we have shared a detailed guide for entrepreneurs who are pleased with the parking booking business idea but are finding all their answers on how to start parking IoT business.
From strategic planning to development cost and its monetization models, we have shared everything in detail.
Market Stats Of Parking Booking Business
Before we begin finalizing the parking booking business, let’s understand how profitable it is to start a parking booking business. Here we share some marketing stats that will enhance business interest in the app development:
- The Parking booking business market is likely to rise up from $1.45 billion in 2023 to $2.46 billion by 2028. Moreover at the CAGR of 11.15% over the estimated period (2023-2028).
- The parking booking business globe market reached over $5.6 billion in year 2024.
- One of the well-known car parking businesses— SpotHero has an estimated annual revenue of $73.7M per year.
- Parkmobile launched in 2008, has an estimated annual revenue of $31.2M per year.
Step By Step Guide: Know How To Start Parking IoT Business
You are a true entrepreneur if you know with accurate investments, you need to focus on careful planning and strategy building. However, if you are struggling to figure out what you need to consider to develop an effective app:
Analyze Business
First essential step to consider before you begin with your investment is to have full knowledge of your business. It is actually very essential to know what kind of business you are investing. Consider learning about your competitors and existing market leads, like SpotHero, SpotAngles, ParkMobile, etc.
Entrepreneurs can invest in getting the Spothero clone and gain benefits from the existing successful strategy. Make an overview of the strategies they might have used in their apps to ensure success and growth. In fact, you can go through their negative sides as well. This will help you build an effective strategy for your business and know which approach works best.
Hire A Right Development Company
Starting an online parking booking business will first require effectively working software. And you can only develop software with the right knowledge and expertise. Hiring the right development team will be a smart move to enter the business market online.
Their expertise ensures that every part of the development is done considerably and under expert eyes. With the hired development company, you can expect to have a team of dedicated front-end and back-end developers and UX/UI designers who will smoothly cover all the aspects of your business requirements.
Integrate Effective Features & Functionalities
Software success depends on whether you successfully captivate your targeted audience’s interest on your software. Ensure that effective features that stand out best for your platform are incorporated. Wisely choose the features and API in your park app.
As per market research, entrepreneurs can make a list of some considerable features to include in their smart parking booking software seamlessly. Analyze, what kind of feature integration do you want? However, as per our suggestion, ensure you keep your software simple with basic features, such as user registration, payment integration, location search and tracking, etc.
Choose your Business Model
While you integrate effective features within your app, don’t forget to include a profitable business model. Incorporating the right business model with careful consideration helps businesses generate profits from the investments in the app. Usually, you can choose 3 major business models in your parking booking business.
Commercial Parking Space Booking Model
In this model, the entrepreneurs can partner their parking space with commercial parking IoTs and garages. Although, the audience can view and reserve spaces in these IoTs at discounted rates.
P2P (Peer-To-Peer) Model
In this model, businesses can directly connect with the targeted audience looking for the right spot. Businesses can enable audiences the ease to use their platform, whether the owners who want to list their parking space or the renters looking for parking space.)
Hybrid Model
This combines P2P and commercial models, giving users a wider range of options. By implementing this model in your parking software development, you ensure your audience chooses between specific listings and commercial parking facilities, which makes your software more versatile.
These models are for the vehicle parking apps are “commission based,” where businesses can collect a percentage of each service they provide to the audience.
Choose Your Revenue Generation Models
As an entrepreneur, investments can make you concerned about developing an ideal parking app. What if it does not worth it? If you are also in this dilemma, your concern is no longer an important consideration! Well, even this has the point businesses can develop a productive and powerful parking booking software by using effective revenue-generation models. These revenue-generating models will help enterprises to get the most from their investments.
Here are some of the revenue generation ways you can use strategically to incorporate in your Parking app development:
- Subscription
Businesses can implement specific commission rates as their subscription charges from your targeted audience. Also, ensure that the targeted audience is enabled to buy and renew their monthly subscriptions. The subscription-based revenue model is a proven model for many softwares available in the market.
- Reward points
This is also one of the best ways to generate profit from your on-demand parking booking softwares. Enable users with reward points, which may work as the greatest source of user engagement. However, by doing so, you can ensure to will get extreme profits when your app starts generating regular users later.
- Commissions
Entrepreneurs looking for a model to increase their revenue generation can charge a fixed commission based on each payment on the app. In fact, you can also include this revenue model in your parking booking softwares.
- Referrals
What is better if than your converted audience promoting your brand to their friends and relatives? Providing referrals to the audience can help you captivate more users to your software. Eventually, this will help you add a great income source for generating profits in your business.
Design Your Software With Perfection
So, after you are ready with the overall strategic approach to make an ideal car parking software, it, time to design your app perfectly. A great app design can help you deliver the best and most simplified parking experience to your app users.
Make sure the UX &UI designers you hire only choose designs for your app that are simple and engaging enough to let your users easily interact with them. You can get prototype development services from the respective development company to witness your software’s interface before it enters the back-end development stage.
Test Before You Launch Your Final App
It is a development stage in which your app will become fully functional by starting its backend and front-end development. The development team will also build and set up its database, servers, APIs, storage solutions, etc., to make your app fully functional and ready to launch.
The development team will also test you multiple times to ensure your smart parking is free of technical bugs and drawbacks. The app launch is also important when starting your innovative parking app platform. When launching an app, you must follow the rules and guidelines of each distribution platform where you will launch your intelligent parking app.
App Maintenance
You are done with every strategy, from planning to testing and deployment. But now what? How do you justify parking booking app works smoothly in every era? Per our suggestion, all your investments are wasted unless you don’t keep your app updated with new trends and technologies. This stage will allow you to improve your app with each update by offering the latest features and eliminating technical glitches.
Businesses That Can Invest In This Opportunity
Parking booking software development has endless benefits. Businesses investing in this parking app development ensure they successfully launch a worth-it business. Though, if you are confused about who can invest in this business, here is what you should know:
Government
Governments can invest in parking booking software to improve urban mobility and reduce traffic congestion. The app helps citizens find parking spots quickly, easing traffic flow and enhancing public satisfaction. This solution enable civil authorities to efficiently manage public parking spaces and generate additional revenue time to time through digital payments.
Retail
Retail businesses benefit from parking booking software by providing their targeted audience a hassle-free shopping experience. As an entrepreneur, you must know that when the user finds parking easily, they are more likely to visit stores frequently and spend more time shopping. This convenience encourages customer loyalty and increases foot traffic, ultimately boosting sales.
Hospitality
Hotels and resorts can enhance guest experiences by providing pre-booked parking options. Guests appreciate the convenience of knowing they have a reserved spot upon arrival. This added service improves guest satisfaction and elevates the property’s reputation, attracting more bookings and repeat stays.
Entertainment and Recreation
Venues such as stadiums, theaters, and amusement parks can simplify visitor experiences by offering pre-arranged parking. Patrons can plan their trips with confidence, reducing stress on event days. This efficiency leads to better crowd management and higher ticket sales as customers prefer venues that prioritize convenience.
Transportation
Airports, train stations, and bus terminals can streamline operations with parking booking software. Travelers enjoy the ease of securing a spot in advance, which reduces delays and enhances the overall travel experience. Efficient parking management also improves traffic flow around transport hubs and boosts revenue.
Other End-user Verticals
Universities, hospitals, and corporate offices can use parking booking software to manage space allocation effectively. Employees, students, and visitors benefit from stress-free parking, improving productivity and satisfaction. Businesses gain better control over their parking assets, ensuring maximum utilization and cost savings.
So, this is the strategic approach you can use to
Cost To Develop Parking Booking Business
While talking about the cost, businesses must consult any trustworthy development company that will help to analyze the development cost in depth. This is because you can not expect to have an exact cost unless you don’t build a proper strategic plan.
However, if you want to develop an AI and IoT-based parking management solution with the basic features, it will only cost you $20,000—$150,000; a more comprehensive and unique app with innovative features can exceed $100,000 or more. However, let us tell you this is just an estimate we provided.
The overall cost of parking app development is influenced by various factors like the app’s complexity, its phrases, the geolocation where you are getting the app developed, and the platform for which it is developed- whether iOS or Android- and several other factors.
However, if you start the parking booking business by developing a clone of SpotHero, ParkWhiz, or any existing app, understanding the cost means you are transparent with your development requirements. So, explore the cost of SpotHero like parking app development in depth, and try out your luck in the parking booking business.
Here is the table that includes the factors affecting the cost of Parking Booking software:
| Development Phase | Cost Range |
| App Design & Branding | $5000– $20,000 |
| App Platform (android or iOS) | $50,000– $120,000 |
| Features Integration | $10,000 – $100,000+ |
| API Integration | $17,000 – $25,000 |
| Compliances | $10000 – $20,000 |
| Testing and Quality assurance | $10,000– $20,000 |
| Deployment & Launch | $2,000 – $10,000 |
| Maintenance | $2,000 – $10,000/month |
Factors Affecting The Cost Of Car Parking App Development
Several factors impact the development cost of white-label real estate apps. Understanding these factors help businesses have an overview of the investment and make the budget accordingly. Here are some of them:
Complexity Of The App
| Complexity level | Cost range |
| Simple Complexity | $10,000 to $30,000 |
| Moderate Complexity | $30,000 to $70,000 |
| High Complexity | $70,000 to $150,000+ |
Platform Type
| Type Of App | Average Cost |
| Native Apps ( Android & iOS) | $50k- $100k |
| Web App | $15k- $50k |
| Cross Platform | $25k- $60k |
| Hybrid apps | $10k- $150k |
Development Team Expertise
| Expertise Level | Estimated Hourly Rate |
| Senior Developers | $100 – $200/hour |
| Mid-Level Developers | $60 – $120/hour |
| Junior Developers | $30 – $60/hour |
| Freelancers/Contractors | $25 – $100/hour |
API Integration
| Complexity Level | Description | API Integration Cost |
| Basic Integration | Simple API, limited endpoints, basic data handling. | $2,000 – $5,000 |
| Moderate Integration | Includes multiple API endpoints, more complex data handling, and some custom logic. | $5,000 – $10,000 |
| Complex Integration | Extensive API integration, advanced data processing, and custom features. | $10,000 – $20,000 |
Development Region
| Region | Costing |
| United States | $100 – $150 |
| Western Europe | $80 – $120 |
| Eastern Europe | $40 – $80 |
| Asia | $30 – $60 |
| South America | $25 – $50 |
| Africa | $20 – $40 |
So, this was all you should know about the development cost of starting a parking booking business. However, must explore IoT smart parking app development cost and features. This will help you build a successful strategy for your business. From budget building to integrating smart features, you can smartly build a standing-out parking booking software.
Elevate Your Business Idea With RichestSoft
Today, many other entrepreneurs are standing out with their existing car parking apps. So, how do you make an impactful position in the huge competition?
Well, that’s when choosing ideal app development plays an essential role in providing businesses with an effective and productive app. Honestly, RichestSoft is the perfect choice for you. We specialize in providing AI-based parking management solutions. We have years of experience in helping entrepreneurs get new and productive versions of their businesses.
Our expertise has helped many businesses develop apps from scratch and can also help you. However, if you want to invest in any predeveloped parking booking software, choose any one app from top 10 parking apps in the USA, and consult us. We will analyze your business requirements and significantly build a similar app with a more powerful appearance. We analyze business requirements, understand your requirements, and then move forward and help you at each development phase.
With more than 15 years of experience, RichestSoft has come a long way. So, contact us now! We will help you develop a competitive app that fully caters to your needs.
Conclusion
Overall, we hope that this comprehensive guide on how to start parking IoT business has provided you with all the information on its development cost to help you stand out in the market. Don’t be stamped if you have any queries.
Fortunately, RichestSoft is here to get your feet under the table! We are a leading mobile app development company in today’s highly competitive market, ensuring businesses the most powerful app on a very affordable budget. Yes, for more than 15 years, we have been helping our clients successfully hold a competitive position in this online market world with our developed app.
So, want to get your effective and powerful app in your budget? Feel free to contact us!
