Xtraspots frees up the use of parking space

NEW YORK, May 20, 2024 /PRNewswire/ — “We call it Xtraspots (pronounced extra spots), with the goal of releasing parking space usage rights,” explains Charles Sepulveda co-founder and president. Unlike other competitors that focus on parking lot partnerships, Xtraspots focuses on vacant, privately owned parking lots, including those at churches, office buildings or private homes.

The approach is similar to Airbnb: property owners provide their address, photos and open booking slots on the platform, while drivers reserve parking spaces through the app. Parking rates range from on-street parking to parking lots, reducing the cost of finding parking for motorists and providing additional income to property owners. “We estimate that every property owner can earn $300 in additional revenue per month, while drivers also save 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 quite the same. Although Airbnb operates daily, parking in the city is predominantly short-term, often measured in hours. Dynamic prices and rising turnover figures therefore pose technical challenges for Xtraspots, distinguishing it 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 has reserved a parking space from 1:00 PM to 2:00 PM, the adjacent time slots would not be available for booking. The actual duration of the blackout depends on demand at the time and proximity to peak hours.

In addition to the technical challenges, Sepulveda emphasizes the importance of customer service. Because parking is an immediate necessity, any issues or concerns must be resolved immediately. “Currently, half of our team acts as a customer service representative to resolve issues quickly. Naturally, AI will automate this part in the future,” Sepulveda adds.

Johannes Shahin, Chief Operating Officer leading efforts to build partnerships with municipalities in the Northeast, including parking lots, emphasizes the importance of strong relationships with technology partners. “Working with innovative technology partners like Tonic3 and the Oyate Group is critical to our mission. Their expertise and support will allow us to improve our platform and expand our reach, making parking more accessible and efficient for everyone,” says Shahin.

Since its launch on February 5, Xtraspots has approximately 300 property owners on board and 500 members registered. The business model adopts a revenue sharing system and currently focuses mainly on New York as a primary catchment area, with plans to gradually expand to other metropolitan areas in the future.

SOURCE Xtraspots