Lack of detailed policies, insufficient scale, and low returns—could this be why shared parking is struggling to take off?

Renting out private parking spaces can turn a profit with minimal effort, while opening up corporate and hotel parking lots can make life more convenient for residents… Over the past period, many localities across the country have been actively exploring practical and innovative approaches to shared parking, signaling a fresh wave of “Internet Plus” initiatives taking root in the parking‑lot sector. However, a journalist’s investigation has revealed that, as the shared parking market expands, certain underlying issues are beginning to surface: In some regions, incentive policies have yet to be fully implemented, and both property owners and management companies remain deeply concerned about safety, while the lack of scale has even led to a contraction in the shared parking market in certain areas. Many people remain hesitant about shared parking and are reluctant to take the plunge.

Behind the parking shortage lies a market potential worth hundreds of millions.

In Yingjun Community, High-Tech Zone, Chengdu, a reporter used the “Private Parking Space” app to select a parking spot. The system then generated a verification code, which security personnel recorded along with the vehicle’s license plate number. Once verified, the car could enter the community and use the map feature to locate its assigned parking space. The reporter parked for 1 hour and 30 minutes at a rate of 5 yuan, roughly 50% lower than the prices charged at nearby on-street parking spaces.

Yin Xiaoshun, general manager of Chengdu TUTULE Technology Co., Ltd. and the developer of “Private Parking Spaces,” stated that the platform has been adopted by more than 300 residential developments in Chengdu, with roughly 120,000 residents endorsing and supporting parking‑space sharing. Another company, Chengdu Yibo Information Technology Co., Ltd., has launched 60,000 shared parking spaces in Chengdu, with over 10,000 transactions recorded in 2018.

The market has already caught a whiff of opportunity. According to the “2018 China Parking Industry Development White Paper” jointly released by Beijing Tsinghua Tongheng Planning and Design Research Institute Co., Ltd. and the Parking Equipment Working Committee of the China National Heavy Machinery Industry Association, as of the end of 2018, China had approved urban parking‑related special bonds totaling nearly RMB 210 billion. At present, dozens of apps related to shared parking—such as ETCP, Youwei Parking, Parking Space Sharing, and Bee Parking—have already gone live, with major and medium-sized cities eagerly joining the shared‑parking ecosystem.

In 2018, the Beijing Municipal Government enacted legislation to encourage organizations and individuals to engage in paid, time-shifted sharing of parking spaces. From 2017 to 2018, the “Project for Establishing Shared Parking Resource Utilization,” led by the Shanghai Municipal Transportation Commission, has cumulatively developed 333 projects and secured approximately 13,500 shared parking spaces. In Xi’an, some parking spaces are equipped with smart undercarriage locks. Once a vehicle parks in a spot, the lock automatically opens and rises; when the driver leaves, they simply scan the QR code on the parking space with their smartphone, pay, and drive away.

Shared parking implementation faces three major challenges.

As the shared parking market expands, deeper‑rooted issues are beginning to surface. In some regions, incentive policies have yet to be fully refined and implemented, and both property owners and management companies remain concerned about shared‑security issues. The lack of scale has even led to a contraction in the shared parking market in certain areas.

The 2018 White Paper on the Development of China’s Parking Industry indicates that, as of the end of 2018, 34 out of 36 major and medium-sized cities in China had enacted local parking regulations or government rules. However, according to reporters’ investigations, due to longstanding historical issues, parking conditions in some cities remain highly complex, and the principle‑based policies aimed at promoting shared parking have yet to be refined and implemented.

Li Wei, Director of the Standing Committee of the Beijing Municipal People’s Congress, stated that nine of the twelve supporting regulations mandated by the Beijing Motor Vehicle Parking Regulations have already been promulgated. By the end of September 2019, measures for the paid public access to parking facilities shall be promulgated and implemented, further unlocking resource potential and enhancing utilization efficiency. By 2020, the “Measures for Implementing the Parking Credit Mechanism” shall be promulgated, and a parking credit‑based reward and joint‑penalty mechanism shall be established as soon as possible.

At the user level, security and failure to park on time as agreed are the primary concerns. “With outside vehicles able to enter at will, how can residents’ property and personal safety be safeguarded?” “What if a vehicle scratches another and then flees—whom do we turn to for compensation?” “When the shared‑use period expires, what happens if the temporarily parked car still hasn’t left?” Such concerns are far from uncommon.

To encourage car owners to share parking spaces, a shared‑parking platform in Shijiazhuang has devised a profit‑sharing model: 65% goes to the property owner, 25% to the property management company, and the remaining 10% to the platform. However, in practice, there are few orders and revenues fall short of expectations, which has dampened the enthusiasm of both property owners and property management companies. Since the city’s “Small-Pile Parking” system went live in 2017, hundreds of private users have shared parking spaces; however, demand has remained persistently low, and rather than increasing, the number of available spots has begun to shrink.

Addressing the challenge of urban parking requires a multifaceted approach.

The experts interviewed believe that addressing the challenge of urban parking requires a comprehensive, multi‑pronged approach. In particular, in some urban core residential areas and older neighborhoods, shared parking should be leveraged as a key solution to parking shortages, while efforts to tap the potential of existing residential areas must be stepped up to expand parking capacity. At the same time, efforts to address illegal parking have been strengthened, fostering a virtuous cycle of governance that equally emphasizes precision-based management, rule of law, and collaborative governance, while leveraging potential, promoting resource sharing, and advancing infrastructure development in tandem.

Chen Fengzhen, a deputy to the National People’s Congress and a professor at the School of Literature of Xingtai University, believes that the government could formulate an overarching plan: on the one hand, it should take the lead in enacting parking‑related legislation and develop supporting policies and corresponding technical standards; On the other hand, preferential policies should be extended to relevant operating enterprises and parking facilities to fully motivate all stakeholders.

Several industry insiders have pointed out that the key to shared parking lies in establishing an efficient public information management service platform that integrates the city’s parking resources. It is necessary to ensure clear information and precise problem resolution across multiple stages, including parking planning, investment, construction, acceptance, and law enforcement.

Sun Hairui, an engineer at the Beijing Institute of Traffic Development, believes that safety is the cornerstone of shared parking’s development. As the number of shared‑parking users grows, platform operators must prioritize enhancing user safety in their R&D efforts. Moreover, parking conditions vary significantly across different districts within large cities, so parking management strategies should be tailored to the scale of individual sub‑areas.

Yu Xiaoxiao, a Beijing resident, said that encouraging property owners to share parking spaces must be financially rewarding for them. The market should be allowed to speak, with parking prices determined by supply and demand. Government agencies must strengthen price oversight to ensure that pricing is reasonable. By issuing guiding measures, we will encourage each region to set shared‑parking‑space pricing that reflects local conditions, thereby unleashing society’s enthusiasm for car‑sharing.