On-demand parking startup SpotHero raises $50 million
SpotHero, the Chicago-based company that has developed an on-demand parking app, has raised $50 million in a Series D round led by Macquarie Capital.
Union Grove Venture Partners participated in the round, along with existing investors including Insight Venture Partners, Global Founders Capital, OCA Ventures, AutoTech Ventures and others, according to the company. SpotHero has raised $118 million to date.
SpotHero said Thursday that this new capital will be used to grow into new markets and expand in its existing ones, build out its digital platform and strengthen partnerships with mobility companies.
SpotHero, which has operations in San Francisco, New York, Washington, D.C. and Seattle, initially set out to develop software that connects everyday drivers to parking spots in thousands of garages across North America.
SpotHero has expanded its focus in the eight years since its founding. The company has added other services as urban density has increased and on-street parking has become more jumbled and confused thanks to an increase in traffic, ride-hailing and on-demand delivery services that take up valuable curb space. It has locked in more than 900 distribution partnerships and integrations including Google Assistant, for voice-enabled parking and Waze in-app navigation to parking. Other partners include Hertz and car2go for fleet parking, WeWork, for commuter parking and Moovit, for multi-modal parking.
Most recently, SpotHero launched a new service dubbed "SpotHero for Fleets" that targets shared mobility and on-demand services.
The service aims to be a one-stop shop for car-sharing and commercial fleets to handle all that goes into ensuring there is access and the right number of designated parking areas on any given day within SpotHero's large network of 6,500 garages across 300 cities. That means everything from managing the relationships between garage owners and the fleet companies to proper signage so car-sharing customers can find the vehicles, as well as flexible plans that account for seasonal demands on businesses.
Under the new service, customers are able to source and secure parking inventory in high-traffic areas across multiple cities and pay per use across multiple parking facilities on one invoice to streamline payments.
The company has signed on car-sharing companies and other commercial fleets, although it's not naming them yet.