Uber launches parking reservations in 15 US cities, with robotaxis in mind

What launched

Uber on Monday, 9 November, started offering Uber Parking, a feature that lets people find, compare and reserve garage, lot and valet spaces inside the Uber app. It is the company's first parking product since it agreed in February to buy SpotHero. Uber says SpotHero's network includes more than 13,000 parking facilities across 400-plus cities, and SpotHero will keep running as a separate app. The feature opens in 15 US cities: Atlanta, Austin, Boston, Chicago, Dallas, Denver, Los Angeles, Miami, Nashville, New York, Philadelphia, San Diego, San Francisco, Seattle and Washington, D.C. Uber plans to expand the service nationwide.

How the service works

Users tap a "P" icon on the home screen, enter a destination and pick a date and time, then review garages and lots on an interactive map that shows upfront prices and arrival times. Filters let them choose self-park or valet, an outdoor lot or a garage, and whether staff are on site. Drivers add their vehicle details and license plate, then enter some lots with a QR code or an automatic plate scan. Plans can change, since a reservation can be extended in the app or cancelled for free until it starts. Uber One members receive 10% back as account credits on eligible parking bookings, within 24 hours, to spend on rides and Uber Eats deliveries. Uber One had more than 55 million members as of 30 September.

Commuters first, robotaxis next

Uber's chief executive, Dara Khosrowshahi, pointed to commuters on the company's third-quarter earnings call.

“Commute is one of our largest categories.”

Uber says the parking network also suits its autonomous vehicle plans. Idle robotaxis could wait in garages or lots until they are summoned, instead of cruising city streets between fares, which could cut empty miles, congestion and vehicle wear. Uber says it plans to explore that staging use across the SpotHero network. Samarth Kejriwal, Uber's senior director of autonomous vehicles, said a robotaxi waiting near busy areas spends less time empty than one driving back to a depot.

“The parking play is all around reducing the cost per mile for the customer.”

Kejriwal also said SpotHero's contracts with US parking firms could help Uber find cheaper rates as robotaxis reach more cities. Uber already has parking deals for some of its partners, and it works with dozens of autonomous vehicle companies.

Uber's wider bet

Uber wants to be the first place consumers turn when they plan a trip, whether they drive or hail a ride. Amit Fulay, Uber's VP of product, expects customers to compare the cost of an Uber ride with the cost of parking their own car.

“We have so much expertise running marketplaces efficiently, and matching supply with demand. Parking is similar.”

Uber is also buying beyond ride-hailing, including a $14.8B takeover of Delivery Hero. Kejriwal said riders will ultimately care about price and reliability.