Sales at one of the UK’s leading parking apps have soared as local councils and businesses shift from traditional pay-and-display machines to online payment systems.
JustPark reported a turnover of £16.1 million for the 12 months ending in March, up from £12 million the previous year. Profits more than doubled, rising from approximately £500,000 to £1.3 million.
The app enables homeowners to rent out their driveways or electric vehicle charging points to other drivers, earning a fee through the platform. With over 13 million users, JustPark also partners with local authorities and businesses to provide cashless parking and reservation services, charging a transaction fee of up to 20p per booking.
The transition to parking apps has accelerated as councils phase out outdated cash-based machines. Another major player, RingGo, saw its revenues rise to £29.9 million for the year ending December 2023, up from £25.8 million the previous year, according to its latest accounts.
Pay-and-display machines typically rely on 3G SIM cards to transmit essential data, such as alerts for malfunctions, full cashboxes, or the need for ticket restocking.
However, with the nationwide phase-out of Britain’s aging 3G mobile networks underway, these machines are becoming obsolete. Many councils are reluctant to invest tens of thousands of pounds to upgrade them.
The AA has criticized local authorities, accusing them of using parking as a “cash cow” to bolster shrinking public funds. Government data shows councils in England generated approximately £1 billion in parking fees and charges during 2023-24.
Some consumers have expressed frustration over the shift to digital parking, citing the need to download multiple smartphone apps for different local areas. In some cases, poor mobile data coverage renders the apps unusable, adding to the inconvenience.
In October, the AA cautioned that rising parking fees could deter drivers from visiting town centers. Jack Cousens, head of roads policy at the AA, stated: “The cost of parking and the ease of payment significantly affect consumer behavior. Drivers will ‘vote with their wheels’ if prices are too high or if payment methods, such as apps or phone-only options, are seen as a hassle.”
JustPark, founded by Anthony Eskinazi in 2006, has grown with the help of £3.5 million in crowdfunding, investments from Index Ventures and LocalGlobe, and support from the Government’s Future Fund during the pandemic. Earlier this year, the company merged with ParkHub, a North American parking services provider, to expand its reach.
