The world keeps getting crowded day by day. When this happens, the vehicular population too increases. With this being a major problem, businesses saw a viable business opportunity.
Gearing up to solve this problem, many On Demand Parking apps came into existence. If you’re reading this blog post, chances are that you probably want to start building an On Demand Parking App.
For folks like you, who want to do some research, here’s a blog post that will tell you the 6 things you should know before building an on-demand parking app.
Sit tight and let’s begin!
#1. Business Model
Before you plan on getting your foot in the door, knowing what business model to pursue becomes paramount. Since this is a foundational step, let’s look at the business models for a better understanding.
There are 3 types of business models in the on demand parking domain.
The navigation based on demand parking apps helps the user find parking space near the vehicle location. In this model, the user can’t pre-book a parking space. Everything happens on the go.
Since this model is pretty basic, this is the best model to start the business with.
Navigation and Booking Based
Navigation and booking based on demand parking apps enable the users to book the parking space in advance. The users are provided navigational assistance to help reach the parking spot.
This model of business has found the most takers in the market. In these apps, the payment is made easier through the provision of payment methods like cash, debit and credit cards, net banking, and e-wallets.
As a bonus, the users get the privilege of parking their vehicles for extra time.
Complete Parking (This model includes all on demand parking app features)
As the name suggests, the complete on-demand parking apps provide a variety of services. Here, the user can pre-book the parking spot for a specific time. The car is then driven by a valet who will park the car for you.
After the stipulated time lapses, the valet will drive the car and hand it over to you. Though it comes at a premium, these types of on-demand parking apps provides the best service.
RECOMMENDED READING: Building On Demand Apps
#2. Revenue Model
The revenue being the most important, you as a business owner should ponder over the revenue model that you are going to implement.
To make things easier for you, we’ve written the types of revenue model-
The revenue in this model comes from the fee that is charged by the parking space owner to the customer. Out of the money the parking owner receives from the user, a small percentage goes to the on-demand parking app owner.
The subscription-based model lets the users make advance payments for pre-booking the slots. The user will pay the money upfront to the on-demand parking app every month.
For regular users of the app, this works great.
The users here will not have to pay each time they want to find a parking space.
The parking app owner can provide reward points to the regular users of the app. This way, a loyal and regular customer base is built. This will ensure you get a regular and continuous source of revenue.
The on-demand parking app owner can charge a fee to the parking space owners by promoting their space higher in the search results.
#3. Research Your Competitors
The golden rule in any business is to always perform research on the existing players in the market. When you enter the market, the existing players are bound to be your competitors.
You should find out their source of revenue, their business model, the USP, and their share in the marketplace.
#4. Must Have Features In Your On Demand Parking App
Now, you have decided to enter the market. You’ve done your research, your finances are sorted and you decide to take the plunge.
The next step would be to build your on-demand parking space app.
This would give an insight into the product that you should build. Like most apps, your app should have 3 panels. One for the user, two for the parking owner, and the third would be for you i.e. the admin panel.
#5. Tech Stack Used
The technologies used to build an app influence the level of security of your app. They affect the scalability and stability of your app.
Whether you use kotlin, react native, java, or swift, take an informed decision.
If you’re confused about the app development, then speak to the app development experts.
#6. Cost of Developing the App
This a vital part that you need to consider before you go for building the app. The cost of the app is dependent on a lot of factors.
Factors such as the type of app, the features, the technologies used, and the business model of the app.
Another thing to note is that the cost generally depends on the number of hours required to build the app. This again depends on the region. To give you an estimate, it’d cost you between $13000 to $18000.
Starting a new business requires a lot of forethought and investment. Getting your research right is the key.
The amount of ground research you do will be instrumental in your success. The above written 6 points should be considered before building an on demand parking app.
In a general sense, the above points apply to most businesses as well. So, what do you think are the other things to know before one builds an on demand parking app?
Let us know in the comments.
With an Engineering degree and a Diploma in Management under my belt, I worked for 16+ years in the automotive industry with various manufacturers. But my passion for writing was overwhelming, which I turned into a career. I have been writing for more than 10+ years and mostly in the IT domain. I am sure you will find the 300+ published blogs of mine in here informative, exhaustive and interesting.