SpotHero

{{Short description|American digital parking marketplace company}}

{{Infobox company

| name = SpotHero

| logo = SpotHero Logo.png

| logo_size = 180px

| caption =

| type = Private

| genre =

| foundation = 2011

| founder = Mark Lawrence
Larry Kiss
Jeremy Smith

| location = Chicago, IL

| hq_location_country = United States

| locations =

| area_served = North America

| key_people = Mark Lawrence (CEO)
Chris Stevens (CMO)
Beth Hayden (CPO)
Matt DiBari (CPO)
Matt Sullivan (CRO)

| industry = Parking

| products =

| services = Parking reservations

| revenue =

| operating_income =

| net_income =

| owner =

| parent =

| divisions =

| subsid = Parking Panda

| num_employees = 219 (July 2018){{cite news |title=500 of SpotHero's Chicago Parking Areas Now Ready for Driverless Cars |url=https://www.americaninno.com/chicago/chicago-startup/500-of-spotheros-chicago-parking-areas-now-ready-for-driverless-cars/ |accessdate=20 August 2019 |publisher=Americaninno.com |date=July 10, 2018}}

| website = {{URL|https://spothero.com/}}

}}

SpotHero is a digital parking marketplace that connects drivers looking to reserve and pay for parking spaces with parking lots, parking garages and valet services. The company, which operates a mobile app and website as well as a parking developer platform,{{cite news |title=SpotHero launches developer platform to expand its parking inventory into third-party apps |url=https://venturebeat.com/2017/02/14/spothero-launches-developer-platform-to-expand-its-parking-inventory-into-third-party-apps/ |accessdate=20 August 2019 |publisher=Venturebeat.com |date=February 14, 2017}} is available in over 300 cities in the United States and Canada. The company is based in Chicago, Illinois.

History

=Early beginnings=

SpotHero was founded by Mark Lawrence and Jeremy Smith in Chicago in 2011, with co-founder Larry Kiss joining the company soon after.Kate Rogers, [https://www.cnbc.com/2015/05/07/spothero-app-helps-fight-parking-tickets.html "SpotHero: An app that makes parking reservations,"] CNBC, May 7, 2015. The company started out as a peer-to-peer parking marketplace, where people could rent out their own private parking spots, before expanding the platform to partner with parking companies and garages.Kia Kokalitcheva, [https://venturebeat.com/2014/12/09/spothero-launches-its-parking-app-in-sf-and-on-demand-valet-startups-should-worry/ "SpotHero launches its parking app in SF, and on-demand valet startups should worry,"] VentureBeat, December 9, 2014.Alex Moazed, [https://www.inc.com/alex-moazed/spothero-paves-the-way-for-parking.html "SpotHero Paves the Way for Parking,"] Inc., November 18, 2016.

In December 2012, SpotHero raised $2.5 million in venture capital funds from Battery Ventures (lead), 500 Startups, Bullet Time, e.Ventures, OCA Ventures, New World Ventures, Lightbank, and Draper Associates; at the time, it only served Milwaukee and Chicago.{{cite web|url=https://www.forbes.com/sites/kellyreid/2012/12/13/chicagos-spothero-raises-2-5mm-to-bring-sanity-to-urban-parking/|title=Chicago's SpotHero Raises 2.5mm to Bring Sanity to Urban Parking|accessdate=2015-01-14|date=2012-12-13|work=Forbes|author=}}{{cite web|url=https://techcrunch.com/2012/12/13/spothero-raises-2-5m-from-battery-lighbank-to-help-you-reserve-parking-in-garages/|title=SpotHero Raises $2.5M From Battery, Lightbank To Help You Reserve Parking In Garages|accessdate=2015-01-14|date=2012-12-13|work=Tech Crunch|author=Rao, Leena}} In June 2014, SpotHero raised an additional $4.5 million in funding and announced new board of directors members, including LinkedIn's Mike Gamson, Match.com's Sam Yagan, and venture capitalist Sam Guren.{{cite web|url=http://bluesky.chicagotribune.com/originals/chi-spothero-parking-funding-bsi,0,0.story|archive-url=https://web.archive.org/web/20140614160955/http://bluesky.chicagotribune.com/originals/chi-spothero-parking-funding-bsi,0,0.story|url-status=usurped|archive-date=June 14, 2014|title=SpotHero announces new funding, board members|accessdate=2015-01-14|date=2014-06-11|work=Chicago Tribune|author=Janega, James}} The company raised $20 million in Series B funding in 2015,Kristen Hall-Geisler, [https://techcrunch.com/2016/09/08/spothero-is-ready-for-the-future-of-autonomous-parking/ "SpotHero is ready for the future of autonomous parking,"] TechCrunch, September 8, 2016. and an additional $30 million in a Series C round in July 2017.John Pletz, [http://www.chicagobusiness.com/article/20170718/BLOGS11/170719870/spothero-tops-off-with-another-30-million "SpotHero tops off with another $30 million,"] Crain's Chicago Business, July 18, 2017. In September 2018, the company raised an additional $10 million, bringing its total raised since launching to $68 million.{{cite news |title=SpotHero raises $10 million to hire developers, upgrade its parking reservation tech |url=https://www.chicagotribune.com/business/ct-biz-spothero-raises-10-million-20180906-story.html |accessdate=20 August 2019 |publisher=Chicago Tribune |date=September 6, 2018}} In August 2019 SpotHero announced $50 million in Series D funding led by Macquarie Capital, bringing the company's total funding to date to $118 million.{{Cite web|date=2019-08-22|title=SpotHero Announces $50 Million Series D Funding Led by Macquarie Capital|url=https://www.businesswire.com/news/home/20190822005097/en/SpotHero-Announces-50-Million-Series-D-Funding-Led-by-Macquarie-Capital|access-date=2020-11-01|website=www.businesswire.com|language=en}}

=Growth and expansion=

Between 2011 and 2013, the company expanded from 5 employees to 22, grew to seven business markets (Chicago, New York, Washington, D.C., Boston, Baltimore, Newark, and Milwaukee) and opened an office in New York City.{{cite web|url=http://www.marketwatch.com/story/on-demand-parking-app-spothero-raises-45-million-in-series-a-funding-2014-06-11|title=On Demand Parking App SpotHero Raises $4.5 Million In Series A Funding|accessdate=2015-01-14|date=2014-06-11|work=MarketWatch}} By August 2015, SpotHero serviced 5 additional cities: Denver, Minneapolis, New Orleans, Philadelphia, and San Francisco.{{cite web|url=https://techcrunch.com/2015/08/19/on-demand-parking-service-spothero-raises-20m-in-series-b/|title=On-Demand Parking Service SpotHero Raises $20M In Series B|accessdate=2015-10-23|date=2015-08-19|publisher=TechCrunch|author=Matney, Lucas}}{{cite web|url=http://fortune.com/2015/08/19/spothero-raises-20-million/|title=Forget valet apps — SpotHero raises $20 million to let people park their own cars|accessdate=2015-11-26|date=2015-08-19|work=Fortune|author=Kokalitcheva, Kia}} In July 2016, the company expanded to Los Angeles,Ally Marotti, [http://www.chicagotribune.com/bluesky/originals/ct-spothero-expands-to-los-angeles-bsi-20160719-story.html "SpotHero expands to LA, plans to add other West Coast cities"], Chicago Tribune, July 19, 2016. and in January 2017 added 13 additional cities, including Austin, Indianapolis, Miami and San Diego.Meg Graham, [http://www.chicagotribune.com/bluesky/originals/ct-spothero-parking-expansion-office-bsi-20170126-story.html "Chicago-based parking startup SpotHero pulls into 13 new markets"], Chicago Tribune, January 26, 2017. In 2020, the company was recognized as the fifteenth-largest privately held consumer marketplace.{{cite web |title=The a16z Marketplace 100: Index |url=https://a16z.com/2020/02/18/marketplace-100-index/ |website=a16z.com |date=18 February 2020 |accessdate=19 November 2020}} As of November 2020, the company services over 300 cities in North America with a network of over 7,000 garages.{{cite news |title=SpotHero raises $50 million to bring underutilized parking spaces online |url=https://venturebeat.com/2019/08/22/spothero-raises-50-million-to-bring-underutilized-parking-spaces-online/ |accessdate=19 November 2020 |publisher=Venture Beat |date=August 22, 2019}}

SpotHero for Business was launched in March 2017, as a business-focused service with features and tools for paying, managing and organizing parking expenses.Paul Sawers, [https://venturebeat.com/2017/03/15/spothero-for-business-launches-to-help-employees-submit-parking-expenses-directly/ "SpotHero for Business launches to help employees submit parking expenses directly"], VentureBeat, March 15, 2017. The company also launched a free developer platform to help businesses integrate parking reservations into their existing apps.Paul Sawers, [https://venturebeat.com/2017/02/14/spothero-launches-developer-platform-to-expand-its-parking-inventory-into-third-party-apps/ "SpotHero launches developer platform to expand its parking inventory into third-party apps"], VentureBeat, February 14, 2017. In May 2017, SpotHero announced a partnership with commuter employee benefits administrator WageWorks allowing users to pay pre-tax dollars for daily parking near their places of work.Cheryl V. Jackson, [http://www.chicagotribune.com/bluesky/originals/ct-spothero-wageworks-pretax-parking-bsi-20170516-story.html "SpotHero, WageWorks team up for pretax on-demand parking near your job"], Chicago Tribune, May 16, 2017.

In 2018, SpotHero was named to Time magazine's inaugural list of 50 Genius Companies that are inventing the future.{{cite news |title=Genius Companies 2018: SpotHero |url=https://time.com/collection/genius-companies-2018/5412656/spothero/ |accessdate=20 August 2019 |publisher=Time}}{{cite news |title=Chicago's SpotHero, Cameo join Apple, Amazon and other tech giants on Time list of companies 'inventing the future' |url=https://www.chicagotribune.com/business/ct-biz-spothero-chicago-time-list-20181004-story.html |accessdate=20 August 2019 |publisher=Chicago Tribune |date=October 4, 2018}} According to Time, "By allowing users to reserve a spot rather than circling dense city centers, apps like SpotHero can help stem congestion and pollution." That year, SpotHero purchased 500 Waze beacons for $15,000 and gave them to the Chicago Department of Transportation to install in the lower roads of downtown Chicago, broadcasting an open signal so GPS will work properly.{{cite news |title=Waze Lights the Beacons to Guide Drivers Through Chicago's Tangled Streets |url=https://www.wired.com/story/chicago-waze-beacons-spothero-gps/ |accessdate=20 August 2019 |publisher=Wired |date=September 12, 2018}}{{cite news |title=Chicago is installing beacons to keep your GPS from freaking out on Lower Wacker |url=https://www.chicagotribune.com/business/ct-biz-spothero-waze-chicago-lower-drive-beacons-20180828-story.html |accessdate=20 August 2019 |publisher=Chicago Tribune |date=August 29, 2018}} Following an integration of its technology with Google Assistant and Hertz rental cars, SpotHero announced that it had readied 500 parking facilities in Chicago for driverless cars.{{cite news |title=SpotHero is getting parking garages ready for driverless cars |url=https://www.chicagotribune.com/business/ct-biz-back-story-mark-lawrence-spothero-20180716-story.html |accessdate=20 August 2019 |publisher=Chicago Tribune |date=July 23, 2018}}{{cite news |title=SpotHero introduces 500 autonomous car-ready garages in Chicago |url=https://venturebeat.com/2018/07/10/spothero-introduces-500-autonomous-car-ready-garages-in-chicago/ |accessdate=20 August 2019 |publisher=Venturebeat.com |date=July 10, 2018}}

In March 2019, SpotHero partnered with transit app Moovit to offer drivers the chance to view and book off-street parking near transit stations in San Francisco, to help ease road congestion in the Bay Area.{{cite news |title=Moovit trials smart parking service in San Francisco |url=https://cities-today.com/new-smart-parking-service-san-francisco/ |accessdate=20 August 2019 |publisher=Cities Today |date=March 14, 2019}}{{cite news |title=Moovit taps SpotHero to show parking spots in multi-modal transit app |url=https://venturebeat.com/2019/03/12/moovit-taps-spothero-to-show-parking-spots-in-multi-modal-transit-app/ |accessdate=20 August 2019 |publisher=Venturebeat.com |date=March 12, 2019}} In June 2019, it was reported that SpotHero was partnering with Waze, a GPS navigation software app owned by Google, to link their navigation and parking into a unified user experience.{{cite news |title=Waze and SpotHero partnership aims to cut parking-based congestion |url=https://www.traffictechnologytoday.com/news/smart-parking/waze-and-spothero-partnership-aims-to-cut-parking-based-congestion.html |accessdate=20 August 2019 |publisher=Traffic Technology Today |date=June 28, 2019}}

In early 2020, the company launched SpotHero IQ, a dynamic pricing product allowing operators of parking garages or lots to adjust prices based on real-time data.{{cite news |last1=Council |first1=Jared |title=SpotHero to Launch AI System for Dynamically Priced Parking |url=https://www.wsj.com/articles/spothero-to-launch-ai-system-for-dynamically-priced-parking-11580293801 |work=Wall Street Journal |date=January 29, 2020}}

Acquisitions

In April 2015, SpotHero acquired San Francisco-based peer-to-peer parking marketplace ParkPlease.Amina Elahi, [http://www.chicagotribune.com/bluesky/originals/chi-spothero-acquires-parkplease-bsi-20150420-story.html "SpotHero buys ParkPlease in attempt to bolster San Francisco presence,"] Chicago Tribune, April 21, 2015.John Pletz, [http://www.chicagobusiness.com/article/20150421/BLOGS11/150429958/spothero-acquires-san-francisco-competitor "SpotHero acquires San Francisco competitor,"] Crain's Chicago Business, April 21, 2015.

In April 2017, SpotHero acquired Parking Panda, a Baltimore-based services and event parking company.Amina Elahi, [http://www.chicagotribune.com/bluesky/originals/ct-spothero-acquires-parking-panda-bsi-20170413-story.html "SpotHero buys Baltimore-based competitor Parking Panda,"] Chicago Tribune, April 13, 2017.Kristen Hall-Geisler, [https://techcrunch.com/2017/04/13/spothero-acquires-parking-panda/ "SpotHero acquires Parking Panda,"] TechCrunch, April 13, 2017. The acquisition expanded SpotHero into Canada, and brought the number of parking locations the company could reserve at to over 5,000.

In November 2020, SpotHero acquired the Toronto-based app Rover Parking, helping the company access thousands more parking locations across Canada.{{cite news |last1=Chen |first1=I-Chun |title=SpotHero to buy Rover Parking to continue expansion in Canada |url=https://www.bizjournals.com/chicago/news/2020/09/10/spothero-to-buy-rover-parking-to-expand-in-canada.html |work=Chicago Business Journal |date=September 10, 2020}}