Vancouver City Council approves new mobile pay parking supplier

Vancouver City Council approves new pay parking supplier for wide range of mobile payment options

Example of the HotSpot Parking app. (HotSpot Parking)

A wider range of pay parking options will be made available in City of Vancouver-owned parking stalls and spaces for added convenience.

Last week, Vancouver City Council unanimously approved City staff’s recommendation to award a multi-year contract to HotSpot Parking for mobile parking payment system services.

This would complement and supplement the existing services provided by PayByPhone, with HotSpot Parking providing added digital payment features and options not provided by the municipal government’s longstanding supplier.

HotSpot Parking, headquartered in Fredericton, New Brunswick, is a subsidiary of Amsterdam-based architectural and engineering design firm Arcadis — the same firm that recently acquired prominent Canadian architectural firm IBI Group.

You might also like:

The contract value with the City of Vancouver is worth about $6.1 million over the initial five-year term, and an estimated total contract value of up to about $12.2 million if the entire 10-year contract, including one five-year term extension, is executed.

HotSpot Parking was selected over bids from PayByPhone, Precise ParkLink, ZipBy USA, Honk Mobile, and ParkMobile.

Just ahead of last week’s meeting, City staff indicated that some of the criteria considered for selecting the successful proponent included payment card industry compliant cloud-based solutions, mobile application and telephone-based interactive voice response systems, multiple payment options (credit card, debit card, and e-wallet), and “meeting functional and technical requirements at a competitive price.”

The bidding process first began in late 2023; in November 2023, Daily Hive Urbanized reported that the City was seeking new pay parking suppliers with mobile payment systems that allow users to end their parking sessions before the time of expiry.

This would also mean users would not be charged for the parking session time that they do not use, which could encourage greater use of the mobile system, provide the public with improved value, and possibly encourage parking turnover. The new system would also enable users to more easily troubleshoot when they input the wrong license plate number when purchasing a parking session, which is the most common error and leads to a poor user experience.

The new supplier would also potentially have pre-pay parking capabilities, enabling users to park at metered parking spaces in the morning, before paid parking comes into effect — such as a scenario where someone arrives at 8 am when parking is free, but would like to remain at the spot and pay for parking after 9 am when paid parking is in effect. Users could also pre-pay for the next day’s parking.

Example of the HotSpot Parking app providing a real-time map showing available curbside vehicle parking spaces. (HotSpot Parking)

Additionally, the potential introduction of accounts-based parking could enable the municipal government to offer payment options for unique groups of users, such as on-duty City staff and inspectors, as well as construction workers, commercial vehicles, and resident-authorized visitors, who would be able to access different rates and parking durations. It is also noted that construction workers and commercial vehicles could potentially use corporate accounts through corporate credit cards and invoicing. Accounts-based parking could offer general eligibility to park at a space in a specific area, access to different rates including free parking, and longer or shorter maximum allowable parking rules.

City staff previously indicated there could be an opportunity in the future to add TransLink’s Compass Card as a parking-payment option. But this would, of course, require TransLink’s approval.

It is suggested that the municipal government would like to retain this payment option possibility in case TransLink allows for the expanded use of the Compass Card. This future possibility likely depends on a complete overhaul of the Compass fare-payment system. As the existing Compass technology is reaching the end of its lifespan and is near capacity, TransLink is in the process of considering a complete overhaul of the system later this decade, which could cost over $200 million.

HotSpot Parking’s website indicates that their products include a user-friendly payment app, real-time parking maps to help drivers locate available spaces and reduce traffic, and QR codes for quick payment options without needing the app.

HotSpot is also a supplier for municipal jurisdictions such as the City of Surrey, City of Halifax, City of Moose Jaw, City of Red Deer, City of Barrier, and City of Saint John.

In some jurisdictions, HotSpot’s app capabilities are also used for taxi and public transit fare payments.

The City of Vancouver has yet to indicate when HotSpot Parking will launch within its jurisdiction, and the precise suite of pay parking features the company will offer.

In 2024, the City of Vancouver’s total revenues collected from pay parking – including street parking, parking lots, and parkades – will account for 4% or $78.4 million of the municipality’s $2.155 billion in revenue. This is up from $69 million in 2023, and $74 million in pre-pandemic 2019.

But curbside street parking revenues continue to be lower than 2019’s total of $63.5 million, with the city forecasting $61.7 million for 2024 – up from $54.5 million in 2023 due to continued pandemic impacts.

The increase in parking revenue in 2024 will be from the result of the expansion of metered on-street parking and “fee optimization to support improved management of on-street parking to reduce congestion for residents and businesses patrons.”

You might also like: