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Opportunities and Challenges Coexist in China's Urban Parking Business

Mar 17,2022

On May 21, 2021, the National Development and Reform Commission of the PRC issued the "Opinions on Promoting the Development of Urban Parking Facilities", which stated that by 2025, large, medium and small cities across the country will have basically built urban parking systems, with dedicated parking facilities, off-street public parking facilities and on-street parking spaces. Social capital will be widely involved, the information technology and the parking industry will be deeply integrated, and the parking resources will be efficiently utilized.

Focusing on the Development of the Industry - How Jieshun Zhicheng Technology Came Into Being

In recent years, the domestic economy has maintained steady growth, the process of urbanization has accelerated, car ownership has soared, and the demand for parking spaces has continued to expand. The problem of "difficult parking" in cities has gradually entered people's field of vision. Overall, the development and governance of urban parking in China is gradually entering the fast lane, and government administrators have begun to try to solve the "parking difficulty" in an intelligent way. More and more companies have noticed this blue ocean market, from internet companies to traditional parking companies, and even central enterprises have also entered the game.

In order to solve the problem of urban parking, respond to the government's call to develop "new infrastructure" and build a sustainable city, Jieshun began to develop urban parking business in 2017, and the first urban parking project was successfully implemented in Jiangsu. With years of experience in the parking industry, Jieshun quickly found the trend of the urban parking industry and transformed from a traditional intelligent hardware manufacturer to an ecological operator with integrated operation and service.

With the continuous development of urban parking business, the Jieshun SAAS platform built with technologies such as AIoT, big data, and cloud computing is constantly promoting the construction of urban parking big data centers and other platforms to help the innovation of the urban parking industry. In 2020, Jieshun Zhicheng Technology came into being and fully undertakes the city parking business of Jieshun Technology.

Urban Parking Brings Opportunities

The implementation of each urban parking project requires comprehensive consideration of many factors. As a consultant, expert and practitioner, Jieshun Smart City participates in the full-cycle operation of the project, and creates a "smart hardware + IoT + blockchain" solution by cooperating with the government and multiple partners.

Jieshun Zhicheng and the government have worked together to plan and build a city-level smart parking management system, adhering to the open and shared AIoT access model, which is widely compatible with equipment from different manufacturers. It ensures large-scale and rapid access to off-street parking lots, and achieves multiple goals such as overall situational awareness of urban parking, big data analysis, scheduling management, coordination of public service resources, information supervision and governance, and urban information sharing.

Relying on the parent company's nearly 30 years of technology accumulation, Zhicheng focuses on the development of smart parking hardware and software, and develops parking solutions based on multiple technologies such as video recognition, radar perception, and ultrasonic detection, which are widely used in on-street, three-dimensional garages and other scenarios. At the same time, it integrates the strong resources and strength of the parent company in terms of delivery, operation and capital, and opens up various cooperation models such as EPC, BOT, joint venture operation, and SaaS services.

Around the core areas of urban parking such as schools, hospitals, office buildings, commercial areas, tourist attractions, etc., Zhicheng provides targeted solutions. For example, it provides technical support for many hospitals in Shenzhen, develops the hospital parking "reservation + sharing" service, integrates the parking space reservation function and realizes the sharing of parking space resources in the surrounding parking lots, and fully supports the recognition of reserved vehicles on their entrance and exit equipment. This provides convenient and fast parking services for the visiting citizens.

At present, Jieshun Zhicheng has successfully deployed a number of city-level smart parking platforms in more than 40 cities and regions across the country, managing over 1 million on-street parking spaces, and has established joint ventures with several partners, with rapid development momentum. In addition, the parent company Jieshun has built more than 100,000 parking lots across the country, of which nearly 18,000 remain connected, which helps to access on-street and off-street parking data as soon as possible.

Challenges Remain in the Future

The development of urban parking is still in a process of exploration in the eyes of professionals in the industry.

In March 2021, a smart parking cloud platform in a city in Guangdong was launched as scheduled. Operational data shows that the average turnover rate of 2,800 parking spaces in the area before the platform was launched was only 2.25. Three months after the platform was launched, the average turnover rate rose to 6.94, with an increase of 308% month-on-month, and the vacancy rate of parking spaces was only 17%. The intelligent platform and price strategy are combined, and public resources are effectively utilized. The original intention of urban parking has already paid off.

However, the future development of urban parking still requires legal supervision, perfect supporting resources and a scientific management platform, which may take a long period of time. Jieshun Zhicheng will continue to develop new technologies in the future, from solutions, hardware to platforms, to continuously upgrade and improve, to provide products that are more in line with market needs and closer to users.