Rethinking How Cities Work With Technology Providers

Technology is transforming the way people park, from mobile apps and connected car integrations to AI-driven navigation. But despite these advances, drivers still have to deal with a fragmented and confusing parking system. Parking rules and payment options are often inconsistent across locations, and in many cities, an exclusive agreement with a single mobile payment provider means only one app is available to pay for parking. As a result, drivers may have to download different apps when parking in other cities or even different areas of the same city. Both the single-vendor and multi-vendor contracting approach also restricts competition, which reduces the incentive for app providers to innovate and improve their services. But the challenge goes beyond parking. It raises a wider question about how cities work with technology providers and whether existing procurement models are always the best approach. 

Breaking down barriers to competition and innovation 

The Open Market is a permitting framework that allows any number of qualified parking apps to operate within a city. It establishes benchmark qualifications that all parking apps must meet while allowing them to set their own pricing for their services and compete directly for customers. It puts drivers in control, letting them choose the app that best suits their needs based on service quality, user experience, features, price or convenience. The model removes the constraints of single-vendor and multi-vendor contracts along with lengthy procurement cycles, encouraging innovation and making it easier to keep pace with new technologies and evolving user needs. Greater choice can also improve compliance by removing the frustration of having to download and use unfamiliar apps. 

Open Market parking is already operating in cities across Europe, but there is no single blueprint for implementation. It can be tailored to local priorities, existing infrastructure and user expectations. In Copenhagen, six parking apps operate in the city's Open Market, with around 98% of parking transactions now made via apps. The city has also cut its yearly bank processing fees by approximately €700,000. 

Opening the market to new technology companies 

Traditional procurement can create significant barriers for startups and smaller technology companies. To win an exclusive contract, prospective providers must have the resources to navigate a complex RFP process and the capacity to serve the whole city. For example, a parking app designed for drivers with disabilities might have features tailored to their specific needs. However, it may be unable to handle the large transaction volumes required for a citywide contract. In an Open Market, that provider would not need to offer its services to every driver. As long as it meets the city’s benchmark qualifications, it could enter the market and focus on its niche audience. 

This creates opportunities for different business models to flourish. Instead of cities trying to anticipate what consumers want and specifying those requirements in an RFP, they can set minimum standards that all parking apps must meet to operate in the city, then let drivers and technology providers find each other.  

A more flexible approach to technology 

This shift from competition for the market to competition in the market also gives cities greater flexibility to respond to emerging technologies. Rather than being constrained by long procurement cycles, they can alter the benchmark qualifications for parking apps at any time.  One example is autonomous vehicles (AVs). As they become more widespread and create the need for new curb management tools, a city could introduce requirements for parking apps to support AV integration without having to wait for an exclusive contract to expire. 

A similar principle applies to municipal licensing for services like trash collection, where cities can establish standards that all operators must meet and revise them as requirements change. This could be something like new noise restrictions, with licensed operators having to adapt their vehicles to keep providing the service instead of going through a new procurement process. 

Using technology to improve curb management 

Moving away from lengthy procurement processes can also give cities more time to focus on technologies that directly support their wider policy objectives. 

Many urban areas face competing demands on limited curb space, from parking and public transportation to pedestrian access and outdoor dining. Understanding how that space is currently used is essential to making informed decisions about how it should be allocated. 

For example, introducing a bus rapid transit lane may require removing parking spaces and assessing the impact on nearby streets. Similarly, converting parking spaces into al fresco restaurant seating requires an understanding of how these changes could affect parking availability and foot traffic at local businesses. 

Technologies such as Insights by Arrive can help cities analyze parking inventory and occupancy and simulate the potential impact of policy changes. This enables cities to make more evidence-based decisions about curb management and how to balance competing demands on public space. 

The road ahead 

The future of urban mobility is about creating an environment where technology and innovation can thrive. By rethinking how they work with technology providers, cities can enable greater choice and competition while developing more flexible partnerships that respond to changing demands. 

Arrive is a leading global mobility platform with the mission to ease movement in cities. Through its family of brands, including ParkMobile, EasyPark, Flowbird, RingGo, and Parkopedia, the company is present in more than 20,000 cities across 90 countries, helping people and decision-makers make smarter choices about urban travel.