Modifying an acient system

The newest lines of parking meters have begun rolling out from coast to coast in the United States . Unchanged for decades, these new meters will allow parkers to pay the meter with their cell phone and also receive updates informing the parker how many minutes are left before the meter expires. The new systems function in several different ways depending on which city you live in.

the systems

•  The user parks his or her vehicle and dials the toll free number located on the parking meter. He or she then enters their credit card information and specifies how much time they want. After which the user will receive a call before the meter expires giving them the chance to add more time to the meter.

•  Used in Las Vegas , this system gives the motorist the option to register their cell phone number and credit card either through a website or a toll free number. After registration, the motorist simply calls the number located on the meter and specifies the amount time they desire. Users with this system are notified 10 minutes prior to expiration through a text message and given the option to add more time.

•  The last system currently in use in downtown Sacramento allows the motorist to park their car and walk to a nearby kiosk and pay for parking using an ATM card or a credit card.

Parking Industry

The United States parking industry currently sits around 26 billion dollars generated from roughly 100 million parking spaces nationwide. Sacramento alone collects nearly 3.5 million from parking meter change and close to 5 million in the form of parking tickets. Due to the industry's size, many companies such as IBM, PepperCoin Incorporated and mPARK are now beginning to invest in product innovation and implementation to grab onto some of the revenue that is being generated.

IBM for example has implemented a system called Intellipay. This system uses the simple method of calling and entering your credit card information. The Intellipay system is currently in operation at the University of California Santa Barbara where it has been a huge success. Since its implemenataion the system has paid for itself in just 2 years and increased parking revenue by 37%. The Intellipay system currently supports 100,000 parking spaces in 20 different regions throughout the U.S.

wIN LOSE OR DRAW?

With all of this change occurring in such a large industry, the question arises, who is actually benefiting the most, driver, enforcer or neither? In my opinion, both sides are mutually gaining from the new systems. On one side you have parking meter customers who now have the ability to feed the meter no matter where they are. Also a parker will likely pay more often considering that it is much easier and convenient. Let's face it, if you do not have any quarters in your possession when going to pay the meter, most will likely take their chances and not pay. By making payment easier, more meters will collect more accurate amounts of money.

Cities that implement these new systems will likely see an increase in revenues once the new equipment that is required is paid off. Although fewer tickets will be issued, the city will be able to collect money more efficiently and accurately while cutting down on those who gamble and decided not to pay.