Uber reportedly seeking to acquire parking startup SpotHero – News

Uber Technologies Inc. is in talks to buy parking startup SpotHero Inc., The Information reported today.

It’s unclear how much the ride-hailing giant might spend on the acquisition. SpotHero reportedly received a $290 million valuation after its last funding round, a $50 million Series D raise that closed in 2019. The company counts Insight Partners and Battery Ventures among its investors.

Chicago-based SpotHero offers an app that enables users to reserve parking space in more than 400 North American cities. According to the company, its platform provides access to thousands of lots and garages operated by partners. SpotHero claims to have helped customers park more than 100 million cars since launching in 2011.

The platform enables users to reserve spots by the hour, day or month. SpotHero provides a money-back guarantee for customers who can’t access the parking space they booked. Until last September, it also offered discounts to users of Uber’s since-defunct Uber Carshare vehicle rental platform.

SpotHero operates its consumer service alongside an enterprise-focused offering called SpotHero for Business. It enables companies to book parking space for employees near their offices and client sites. A set of connectors can sync parking reservations to an organization’s expensive management system.

For developers, SpotHero provides an application programming interface that makes it possible to integrate its platform into external services. An automaker, for example, could make SpotHero accessible through a vehicle’s infotainment system. Venue operators can use the platform to help visitors find nearby parking spots.

SpotHero also markets its API to other organizations, including public transit operators and ride-hailing providers. If an acquisition materializes, Uber could use the platform to help the drivers in its network more quickly find parking spots. That may enable the company to provide a better customer experience for users of its ride-hailing app.

A SpotHero integration might also be useful for Uber’s autonomous vehicle fleet. In July, the company announced plans to make 20,000 self-driving taxis available through its ride-hailing app. An autonomous vehicle could theoretically use SpotHero’s data on the location and availability of parking spots to drop off passengers closer to their destinations.

In addition to launching new parking features, Uber could use its market reach to scale SpotHero’s API business. The former company has a significant presence in the public transit segment, one of those where SpotHero sells its API. Public transit agencies use Uber’s ride-hailing app to provide backup taxis during service disruptions.

Uber regularly makes acquisitions to support its growth efforts. In 2021, it paid $750 million to buy Transplace Inc., a provider of logistics software that is now part of its Uber Freight business. More recently, the company acquired Denmark’s largest taxi operator.

Photo: Uber