If you own a car, you know how challenging it can be to find a parking spot, especially during peak hours. It can turn an enjoyable outing into a frustrating experience.
Fortunately, car parking rental apps like JustPark and SpotHero are changing the game.
These apps connect drivers with available parking spaces, making it easier to find and reserve spots in advance.
These innovative apps have brilliantly addressed the common issue of parking scarcity and turned it into a profitable venture and we can see the potential it offers for many entrepreneurs.
If you’re interested in developing a similar app, this blog is for you!
Business Model of Car Parking Rental Apps
When it comes to car parking rental apps, there are three main business models to consider:
1. Peer-to-Peer (P2P) Model
This model connects individuals who have parking spaces available with drivers looking for a spot. Owners can list their space, and renters can book it directly through the app.
2. Commercial Parking Spaces Partnership Model:
In this model, the app partners with commercial parking lots and garages. Users can view and reserve spaces in these lots, often at discounted rates.
3. Hybrid Model
This combines both the P2P and commercial models, giving users a wider range of options. They can choose between individual listings and commercial parking facilities, which makes it more versatile.
The revenue model for these apps is primarily "commission-based", where you collect a percentage from both the renter and the space owner for each transaction.
How Car Parking Rental Apps Work?
Before diving into the steps for building your app, it’s crucial to have a clear understanding of how car parking rental apps operate.
Here’s a breakdown of the workflow for both renters and owners:
Renters Workflow
- Sign-Up: Users create an account on the app by providing essential details like their name, email, and payment information.
- Search: Users search for available parking spots in their desired area by applying filters to narrow down options based on price, distance, or type of parking.
- View Listings: They view detailed listings that include photos, descriptions, and the availability status of the parking spaces.
- Book: Once they find a suitable spot, they book it directly through the app, by selecting the duration for which they need the space.
- Payment: Renters make payments through the app for a seamless experience, using options such as credit/debit cards or mobile wallets.
- Confirmation: After booking, users receive a confirmation notification with details about their reservation.
- Communication: The app facilitates communication between the renter and the owner and allows renters to ask questions or clarify details.
- Park: Users receive instructions for accessing their reserved spot, such as entry codes or specific directions.
- Review: After using the parking space, renters leave reviews and ratings, which helps future users make informed choices.
Owners Workflow
- Sign-Up: Owners create an account to list their available parking spaces, and provide necessary information about the location and details of the space.
- List: Owners list their available parking spaces on the app, including photos, pricing, and availability.
- Manage Listings: They update their listings, change availability, and set pricing based on demand or time of day.
- Manage Bookings: Owners view their bookings, manage reservations, and respond to inquiries or messages from renters.
- Receive Notifications: They receive notifications when a booking is made, along with details about the renter and the reservation.
- Receive Payments: After each booking, owners receive payments through the app, with a clear breakdown of earnings and any fees deducted.
- Review Renters: Owners leave feedback on renters, which contributes to community trust and helps other owners evaluate potential renters.
Steps to Build a Car Parking Rental App
1. Analyzing the Market
Before diving into app development, it’s crucial to analyze the market.
Understanding your target audience and competition will help you make informed decisions. Ask yourself:
- Who are my potential users?
- What specific parking needs do they have?
- Who are my competitors, and what services do they offer?
This analysis will guide your app development strategy and help you tailor your features to meet market demands.
2. Determining the Revenue Streams
We already know that the primary revenue stream comes from commissions.
With the commission-based model, you make revenue by charging the renter and owners a service fee for each booking they make through your platform.
However, there are additional revenue streams to consider:
- In-App Advertising: Partner with local businesses to display ads within your app.
- Subscription-Based Services: Offer premium features or memberships for users who want additional benefits.
These alternative revenue streams can help increase your app's profitability.
3. Identifying the Essential App Features
Identifying the essential features is key to building a user-friendly platform. You also need to think about the features you need to manage the apps efficiently.
Here are the must-have features for each type of user:
Features for Renters
- Search Functionality: Users can easily search for available parking spots in specific areas.
- Search Filters: Filters like price, distance, duration, and type (covered, uncovered) allow renters to find the best match for their needs.
- Listing Details: Each listing includes photos, descriptions, pricing, availability, and access details.
- Booking System: Users can reserve parking spaces for specific times and dates.
- Payment Gateway: Secure payment options, such as credit/debit cards or mobile wallets, offer a convenient experience.
- Booking Confirmation: Renters receive a confirmation notification with booking details and access information.
- Communication with Owner: In-app messaging to contact owners directly for questions or instructions.
- Navigation Assistance: Map integration or directions to guide renters to the reserved parking spot.
- Ratings & Reviews: Allows users to rate and review the parking space and experience.
Features for Owners
- Sign-Up & Profile Management: Owners create profiles and manage their personal and payment information.
- Listing Management: Tools to add, update, or remove parking listings, including details like photos, pricing, location, and availability.
- Availability Management: Calendar integration to set when spaces are available or unavailable for booking.
- Booking Notifications: Real-time alerts for new bookings, inquiries, or messages from renters.
- Communication with Renters: In-app messaging to address any questions or provide instructions to renters.
- Pricing Management: Options to adjust prices based on time, demand, or other factors.
- Earnings Tracker: Dashboard to view income from rentals, track earnings over time, and see upcoming payouts.
- Payout Setup: A secure way to set up payout preferences and track when payments are due.
- Ratings & Reviews of Renters: Owners can rate and review renters.
Features for the Admin
- Admin Dashboard: An overview of all listings, bookings, users, and overall platform activity.
- User Management: Tools to manage renters and owners, including profile moderation, activity monitoring, and support.
- Listings Management: Ability to oversee all listings, verify content, and manage disputes if necessary.
- Booking Management: Tools to view and manage all bookings and handle booking disputes.
- Service Fee Setup: Set up and adjust commission or service fees for transactions.
- Earnings Tracking: A comprehensive view of all transactions, including commissions earned by the platform.
- Web & Mobile App Settings: Ability to manage app configurations, such as branding, content updates, and layout adjustments.
- Content Management: Moderation tools for user-generated content like reviews and ratings.
- Notifications Management: Control the types and frequency of notifications sent to users.
4. Building Your Car Parking Rental Platform
When developing your car parking rental platform, you generally have two main options: custom development and readymade app solutions.
Custom Development
Custom development is the usual way of developing your platform. It involves hiring a development firm to build your platform from scratch.
Here the process involves:
- Planning: Defining your app requirements and creating a wireframe.
- Designing: Crafting the app’s interface based on the plan.
- Developing: Building the app’s functionality according to the design.
- Testing: Ensuring the app is free of issues and bugs.
- Launching and Maintaining: Launching the platform and regularly maintaining it.
Custom development can be time-consuming and require more resources, but it can offer you a fully tailored app for your business.
Readymade App Solution
Your next option for launching your platform is a readymade app solution.
To help you understand, readymade app solutions are web and mobile apps that come with pre-developed features and workflows for different types of businesses.
You can purchase these apps, rebrand them to fit your business, and launch them as your business app.
The process includes:
- Purchasing: Acquiring the readymade app solution.
- White-Labeling: Rebranding the app to reflect your brand, typically at no additional cost.
- Customizing: Adding any unique features (if needed).
- Testing: Ensuring the app functions properly
- Launching: Getting your app live and operational quickly.
Readymade solutions are cost-effective and faster to launch due to their pre-developed nature.
In summary, these are your two options. Now it's time for you to decide.
Evaluate the options and choose the one that fits your requirements and budget.
And, if you decide on a readymade app solution, why not check out our space rental app solution?
With our solution, you get:
- Web app for both renters and owners.
- Android and iOS apps for renters and owners.
- Admin panel to help you manage the platform.
- Free tech support, which covers white-labeling, server installation, app launch, and support following app rejection.
- 100% source code, so you may change its functionality if necessary.
Conclusion
After you launch, focus on digital marketing strategies to attract users and grow your platform. Consider partnerships to increase visibility.
As your user base grows, scalabiling the app becomes important. Ensure your app can handle increasing traffic and transactions.
By paying attention to these aspects, you can create a sustainable and profitable car parking rental app that meets the needs of both renters and parking space owners.
Launch your App with Us!