ATB - Digital disruption in the parking meter industry

Extract

[...] Also, the target audience, i.e., consumers of this type of service, is broad and does not necessarily reach a young public that would tend to use mobile parking services more (linked to the fact that ‘young people' are taking their driver's licence later and later). Finally, the municipalities, which remain the main clients, especially the administration, may face a certain amount of mistrust (data collection, regulatory aspects, etc.). II. Can the entrance of mobile parking providers be considered a disruptive innovation? How does the business model of ATB differ from the business model of mobile parking providers? [...]

[...] The other alternative could be to enter in this new mobile parking market while maintaining its activity with parking meters. This would provide a combined offer to municipalities which, as we have seen, tend to develop mobile parking alongside the traditional parking meter. In this way ATB could meet the demand for its customers and convert municipalities that only use parking meters to new mobile parking customers. This would require the acquisition of new resources and new technical skills to be able to compete with the players already present in the mobile parking market. [...]

[...] ATB's business model differs in many ways. Regarding production, we are no longer talking about a product but about a service that is sold to municipalities. There are no more production sites, no more procurement or suppliers of raw materials, everything is digital, which reduces the whole structure of the company and therefore the costs (payroll, production site, raw materials, transport, etc.). On the customer side, the same target is not targeted, particularly since municipalities that already have a parking meter system may wish to acquire a mobile parking system, which increases the number of prospects for mobile parking suppliers. [...]

[...] ATB - Digital disruption in the parking meter industry This case study aims to show the effects and impacts of a disruptive innovation in the market. In this practical case ATB is a leading and dominant company in the parking meter market. For more than 30 years, the company has specialized in the manufacture and distribution of parking meters for city parking spaces. ATB is a medium-sized company that generates a turnover of 5.1 million euros in 2014, of which more than 80% comes from the sale of parking meters for on-street parking spaces. [...]

[...] Does mobile parking have the potential to make parking meters obsolete? Why has the substitution of parking meters by mobile parking not yet taken place to a larger extent? From the information in the case study mobile parking solutions represent a real threat to parking meters and that in the face of ever-increasing digitalization, it could tend to make parking meters obsolete. In any case, there is a lot of reason to believe that this ‘new' way of paying for parking could eventually replace parking meters. [...]