Will 2021 be the Year that Digital becomes King for the Parking World? - RingGo
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Introduction It’s that time of year when we all reflect on the year gone by, and what a year it has been. In 2020, we all stood around and smelled the fresh air. We took walks and heard wildlife return to residential areas. We saw smog disappear and appreciated how clean our cities could be. This was not the change in mindset we anticipated, but it is one we hope will last as the government also embraces ambitious targets to phase out petrol cars. Despite everything that this year threw at us, we moved forward. Maybe not in the way we planned, but we pivoted and found our agility. Sitting at the end of 2020, with many unanswered questions still looming, how do we take what we learned and move into 2021? 2
Looking back to move forward Predictions by Peter O’Driscoll, Managing Director. The mobility industry was one of the hardest hit in 2020 as everyone stopped moving. Trains were empty, roads were deserted, and parking plummeted. While many of my 2020 predictions were still topics of discussion this year, they inevitably veered in a significantly different direction. “One of the biggest changes I think we will see in 2021 is in the public transport pricing model. With remote work still slated to be more popular than pre-COVID, less people will see the need to pay the price for public transport. ” Peter O’Driscoll, Managing Director Over 50% of people are still traveling less than they did pre-COVID, and despite the fact that many are likely to return to pre-COVID-19 habits, private cars are likely to maintain their new found popularity along- side biking and walking. In 2021, it will take a real force to get people back on public transport in the numbers we have traditional- ly been used to. Driving into the office once or twice a week becomes more financially feasible, if not also safer. Public transport – especially trains – need to put together more competitive pricing to compel commuters back onto the platforms. The time it takes us to move back to public transport is also a time in which more cars are on the road, bringing pollution back to the forefront of people’s minds. To combat the increasing use of cars, I think we will start to see the extension of emissions-based vehicle schemes – ULEZ, CAZ, EBP – to offset the environmental impact of busier roads. Additionally, lots of towns and cities will look at traffic reduction schemes such as low 3
traffic neighbourhoods to meet local pollution targets, making the cities greener. Another interesting direction change was that everyone became reengaged in the digital debate, not from an ease of use standpoint or a technology advancement argu- ment, but for safety — priority number one this year. Safely parking in a touch free way without using coins and parking machines; safely social distancing by not queuing at parking machines, and safely getting the economy moving again. We also strengthened our relationships with local authorities, but instead of looking at improvements, we were triaging issues. Turning parking off and on again, providing solutions to help key workers, and strengthening touch free parking to encourage mo- torists to venture out when restrictions were lifted. Local authorities have suffered this year, and it was everything we could do to help out in any way we could. I really believe that lots of changes that come out of 2020 will have knock on effects to other mobility areas in 2021. Watch this (parking) space… 4
Embracing digital solutions in 2021 Predictions by Sarah Earl, Product Director UK 2020 forced everyone to focus, and as traditional business models were threatened by lockdown regulations, tech flourished. Companies have had to reinforce their core strategies, put research into new and emerging markets or products on hold, cut costs and re-evaluate what their customers really need. To do this, everyone went digital. From small village stores, fish and chip vans to baby groups. If you haven’t embraced digital to give customers an online offering during lockdown, then you are most likely going to struggle to survive. Parking was no differ- ent. Nobody wanted to touch street furniture when we emerged from months of lockdown, they no longer wanted to stand in queues with other people or carry coins. This meant that parking apps were a lifeline for people wanting to venture out, but also be cau- tious of a new range of threats from the virus. I believe that 2021 will continue – if not quicken – this trend of embracing digital solu- tions, and apps will be at the centre of it. Organisations need to focus on accessibility and the usability of apps, while considering a more security conscious consumer base. 5
Getting ahead of the regulation curve In 2021, PSD2 will finally be enforced, and while this has been pushed back to September, I think it will be part of a year of change in the payments industry. As we try to work around a system that introduces friction for users, it is our opportunity to innovatively create solutions that are compliant and friction free. The need for a smooth payment process will drive consumers towards SCA compliant payment methods such as Apple Pay and Google Pay in 2021. If your app or website does not feature these payment methods, customers are likely to disengage due to the authentication step up. 2021 is the year to get ahead of the regulation curve by listening to customers and driving innovation through the payments process. 6
Women in tech, rising up the ranks Women have definitely started to rise up in the ranks within technology organisations, there is no doubt about that. When I have openings on my product team, I see as many capable female candidates as I do male and I am currently working with some very smart, driven women. That being said, there still seems to be some limits to what type of work women are embracing in tech and how high they can rise. They are few and far between at the C-level, and this is something I would like to see change in the coming years. It will only become more feasible as we pull along the ambitious women coming behind us and raise our voice collectively. Unfortunately, there is still a disparity between female representation in product organ- isations versus engineering organisations, and a big part of this is to do with education. 7
A focus in engineering still begins early and forces you down, what feels like, a very rigid path. Product organisations, on the other hand, bring together people from lots of different backgrounds, are more inclusive and collaborative, and cater to people who might not have necessarily started in tech when they were teenagers. I do see this trend changing as the way we educate children changes. Today, women are exposed to coding, and technology in general, at such a young age, it will become a more natural fit for many to pursue in education and as a career. The little girls of today, will become the tech leaders of tomorrow. 8
Data-driven decisions Predictions by Gareth Buchanan-Robinson, Commercial Director 2020 saw big plans go out the window and instead drove focus towards pivoting, survival and helping others where possible. But 2021 will see organisations reprioritise again, with a bigger focus on their long-term business plans. Although these plans may look a bit different, they will still be about driving the business forward – we cannot stand still in 2021. Local authorities have traditionally been slow to change and adopt new technology, but they have to start reacting. They need to better understand the behaviours of motorists and give them what they want. We have been talking about digital solutions for years, but 2021 has to be the year local authorities embrace them. Creating a touch free environment must be a priority – in the next two years we will see at least 50% less parking machines on the street and preparing for that transition has to start now. In 2021, councils need to continue to revisit their entire strategy around parking, in fact, they need to stop thinking about it as a parking service entirely. It can no longer just be about efficient parking; it has to be about health and safety – both short term and long term. “The long-term result of adopting digital solutions for parking is the data it provides. This data helps determine and predict the behaviour of drivers both today and in the future, but it needs to be put to good use. ” Local authorities need to start understanding matters such as regional congestion and the types of cars sitting in that traffic, in order to make better decisions about dynamic pricing, electric car adoption and congestion reduction. In 2021, with tight budgets and rising pressure, these are not changes that call for educated guesses or gut in- stinct, they call for decisions rooted in data. 9
Diversifying the parking playing field In parking, many of the players in the happenings in 2020, and so the parking ecosystem will never look the same industry must diversify. again. There will be mass amounts of consolidation in 2021 and into 2022 Consolidating mobility functions - as we shift focus from just parking to parking, charging, fuelling, tolling, overall mobility. This will be driven permits, train and bus fare, bike largely by the changing transportation rental, etc - all in one place will form a behaviours and the growing consumer somewhat North Star. And it will take need for speed and efficiency. years. Becoming the sole provider of a customer journey in mobility is a large With the continuing adoption of task. But 2021 will be the start. different work patterns, commuter trains will find themselves less busy at peak Creating a parking hub where consumers times as we no longer feel the pressure pick their preferred parking app to pay to get the 7:20am to London every day. up and down the country is a first step. People will continue to favour driving to It creates choice and freedom driven by work over public transport and many will consumer demand. It raises the stakes only commute on certain days. Mobility and pushes each provider to innovate. has been changed irreversibly by the 10 10
Advancing the digital conversation Closing thoughts from Peter O’Driscoll 2020 was a year of adjusting to consumer needs; not something that the parking industry has always catered towards. Often, we get bogged down in what those running the car park need and forget about the motorists we hope will park their cars there. But this mentality has to change. We have to catch up with the consumer-driven culture. In 2021, as there is a continued race to the bottom with tender offers and pressure on margins for local authorities, I think we need to take a step back and really think about what we are offering the consumer. We need to factor choice into the equation and in such a competitive market, choice is often completely taken away from the user. Next year we will start to see this change as the leaders in our industry start to experiment with what it would look like to have a multi-vendor ecosystem. If the motorist had a choice of which parking app to use when they park, not only would it be better for them, it would be better for the operator. It would advance the digital conversation even more and force app providers to create really great products. Creating this multi-vendor model leads directly into creating smarter cities, where data from lots of different sources – multiple parking apps being one of them – can be ag- gregated in a specific platform making it easier to understand, plan, and innovate even more. This will present the opportunity to create interconnected journey’s through cit- ies, as well as track how and when people are using different modes of transport. This ultimately all leads back to creating smarter, cleaner, healthier, more liveable cities. While this goal of a smart city might still feel far away, those that don’t take the first steps towards it next year will find themselves left behind quickly. 11
We are not going to flip the calendar on December 31 and find that all of the challeng- es we have faced in 2020 magically disappear. In the mobility industry, it is still going to take months to find level ground, but 2021 is not a year to stand still. It is a year to take what we have learned and start investing. It is the year when digital will finally become king of the parking world. 12
About RingGo RingGo is the UK’s no. 1 cashless parking solution. We’re driven by one thing: making our cities healthier, cleaner and more liveable. Transforming cities into places where people can move around freely, with easy-to-use mobility solutions, while reducing congestion and pollution. How? By unlocking the power of technology to make parking simple, quick and effortless for drivers, operators and cities. We’re proudly representing our UK and European brands including RingGo, PARK NOW, Parkmobile, and Park-line. Our team of 500 parking pioneers serve clients throughout Europe from our offices in Germany, the UK, France, the Netherlands and Belgium. RingGo is part of YOUR NOW Group, the global joint venture in mobility solutions founded by BMW and Daimler. NOW Group offers car sharing, ride-hailing, charging and parking solutions to help people navigate their urban journeys with ease while being environmentally conscious. RingGo Maplewood Chineham Business Park Basingstoke, Hampshire RG24 8YB www.ringgo.co.uk
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