Press Room
PR Newswire, Tue, May 21, 2024, 3:26 AM GMT+82 min read
NEW YORK, May 20, 2024 /PRNewswire/ -- "We call it Xtraspots (pronounced as extra spots), aiming to release the usage rights of parking spaces," explains Charles Sepulveda Co-Founder and President. Unlike other competitors who focus on partnering with parking lots, Xtraspots targets privately owned vacant parking spaces, including those at churches, office buildings, or private residences.
The approach is similar to Airbnb: property owners provide their address, photos, and open booking time slots on the platform, while drivers reserve parking spots through the app. The parking rates range from street parking to parking lots, reducing the cost of finding parking for drivers and bringing additional income to property owners. "We estimate that each property owner can earn $300 in additional income per month, while also saving drivers half an hour of early departure time," says Sepulveda.
Xtraspots' service may seem like a shift from Airbnb's accommodation model to parking, but it's not entirely the same. While Airbnb operates on a daily basis, urban parking is predominantly short-term, often measured in hours. Thus, dynamic pricing and increasing turnover rates pose technical challenges for Xtraspots, setting it apart from competitors who primarily focus on monthly rentals.
"Our solution is to design dynamic blackout periods," explains Xtraspots' Chief Product Officer, Sander Chen. Simply put, this means that consecutive booking periods are not allowed. For example, if someone booked a parking spot from 1:00 PM to 2:00 PM, the adjacent time slots would be unavailable for booking. The actual blackout duration depends on the demand at the time and the proximity to peak hours.
In addition to the technical challenges, Sepulveda emphasizes the importance of customer service. Since parking is an immediate need, any issues or problems must be resolved immediately. "Currently, half of our team serves as customer service representatives to address issues promptly. Of course, in the future, AI will automate this part," Sepulveda adds.
John Shahin, Chief Operating Officer leading the effort to build partnerships with municipalities around the Northeast, including parking lots, highlights the importance of strong technology partner relationships. "Collaborating with innovative technology partners like Tonic3 and the Oyate Group is crucial to our mission. Their expertise and support enable us to enhance our platform and expand our reach, making parking more accessible and efficient for everyone," says Shahin.
Since its launch on February 5th, Xtraspots has onboarded approximately 300 property owners and registered 500 members. The business model adopts a revenue-sharing system and currently focuses mainly on New York as its primary service area, with plans to gradually expand to other metropolitan areas in the future.
Reference:
https://finance.yahoo.com/news/generating-revenue-enhancing-convenience-xtraspots-192600227.html