Problem: COMPANY: Parking Panda
Business idea: Create a service that allows motorists to find parking spots on a regular basis or for special events, and allow parking space owners (both individuals and commercial lots) a way of connecting with drivers to rent underutilized parking spaces. pitch: Finding convenient parking in a city or for a major sporting event or concert is a frustration that almost every motorist has experienced. Trouble finding parking is also a major cause of congestion. Experts estimate that 30 percent of urban traffic is caused by motorists trying to find parking. At the same time, commercial lots and garages often have underutilized parking spaces because people can't find them or mistakenly assume they are full. In most cases, there are also homes and businesses within a short walking distance from where people are looking for parking with spaces that are vacant during large portions of the day. Parking Panda has created a solution for this problem. It is a website and app that connects drivers looking for parking with commercial lots and individuals who have spaces to rent. Here's how it works. In areas where Parking Panda is available (70 cities and counting), drivers that are already on the road can enter their location, and Parking Panda will show them the nearest available spaces.
If you're planning ahead, you can browse a collection of parking spots based on price and location, and reserve one. You can search by neighborhood, restaurant, hotel, nightclub, music venue, or stadium. When you arrive at your destination, your spot will be available, even if the ramp or lot is sold out. You gain admittance by showing the reservation on your smartphone to the attendant. If the lot is gated and does not have an attendant, you gain admittance by using the Parking Panda app to scan a code at the entrance, which opens the gate. You exit the lot in the same manner. Parking spots can be reserved on a one-time basis or can be reserved for regular use. Parking Panda collects the fee at the time the reservation is made and then reimburses the owner of the spot. Parking Panda makes money by taking a commission on each spot that is rented. It negotiates directly with commercial lots and garages. Individuals and businesses that have parking spaces available simply upload a picture of their spot and set a price. Parking Panda lets the owner know when a spot has been rented and handles the payment. Parking Panda also has arrangements with sports leagues such as the national Basketball Association (nBA) and the national Hockey Association (nHL) to facilitate parking for their events.
1. Based on the material covered in this chapter, what questions would you ask the firm's founders before making your funding decision? What answers would satisfy you?
2. If you had to make your decision on just the information provided in the pitch and on the company's website, would you fund this company? Why or why not?