London Daily

Focus on the big picture.
Friday, Aug 22, 2025

Rise of the parking app makes the rich richer as motorists struggle

Rise of the parking app makes the rich richer as motorists struggle

Digital parking has spread rapidly across Britain, but campaigners say it is stressful or inaccessible for many

All summer, exasperated motorists have been jabbing at their phones, trying to download and install yet another parking app. Then follows the interminable chore of entering card details and number plate, which may ultimately be derailed by poor phone signal or a glitchy app.

Anti-ageism campaigners say navigating the process can be overwhelming for some older people who, in the words of the veteran consumer champion Dame Esther Rantzen, risk being “imprisoned at home”.

Those who loathe this seemingly unavoidable aspect of the modern world will take little or no comfort from knowing that the rise of digital parking is making some rich people even richer.

Ten members of Germany’s sprawling Porsche automotive dynasty, which controls Volkswagen, were named in accounts lodged at Companies House this month as “persons of significant control” behind PayByPhone, one of the UK’s most successful parking apps. It paid dividends worth £13.6m in the year to the end of December 2020, the documents show.

Accounts for the latest year show a return to profit after the impact of the pandemic, with earnings of £172,000 on the back of a 24% increase in revenues to £4.2m.

Local government disclosures show the company has spread across Britain, winning contracts with councils including North West Leicestershire, Luton, North East Lincolnshire and Sheffield, to name a few.

Its website lists more than 120 areas where it collects cash from drivers, encompassing hundreds of local authority sites, as well as private businesses and the National Trust.

But PayByPhone is only one player in a burgeoning market that include Saba, Just Park and the UK market leader RingGo, which has contracts with the City of London, North Devon, Leeds and Nottingham, and boasts thousands of locations on its website.

RingGo is part of the Park Now Group, which was owned by another German auto giant – BMW-Daimler – until it was sold in 2021. The buyer, EasyPark Group, is in turn owned by Vitruvian Partners, a pan-European private equity powerhouse with around £8bn of assets.

Vitruvian’s 12 members – the senior employees entitled to a share in its profits – have pocketed payouts worth more than £100m over the past two years alone, thanks to shrewd investments such as EasyPark.

Accounts for Park Now’s Dutch parent company, a subsidiary of EasyPark, show that it is doing something common to tech businesses with an eye on dominating their sector, such as Uber and Tesla: growing very fast while incurring heavy losses.

Turnover in 2017 was €46m (£39m) – including the US and Europe – but had doubled to €92m by 2019, the last reporting period before the pandemic hit sales. Over the same period, a €1.1m pre-tax profit turned into annual losses of more than €30m, largely due to a tripling in staff costs as the company annexes ever more car park real estate.

The accounts also reveal exactly where Park Now makes the bulk of its revenue. In 2019, €7m came directly from the councils that pay for its services but the vast majority, a further €79m, came directly from app users. EasyPark declined to comment.

Councils that use such services deny they are forfeiting valuable revenues that could be spent on public services. A spokesperson for Leeds city council said it did not have the capacity to operate its own app-based parking service.

The local authority benefits, it says, because it gets the parking fee, with RingGo picking up a 15p transaction fee. Customers who pay cash will not pay this fee.

In Nottingham, a council spokesperson said using PayByPhone saved the authority money, reduced incidents of vandalism and theft at pay machines and meant there was no need to have vehicles on the road collecting cash from them.

There may, however, be another benefit to councils from a system that some find harder to use. Data obtained under freedom of information legislation earlier this year showed councils collected £158m of parking fines in areas that offered a cash option. In those that did not, the figure ballooned to £257m.

What may be lucrative or pragmatic for councils can be stressful for drivers, particularly in the growing number of areas where cashless payment is the only option.

A sign on a pay-and-display parking meter in Bury, Greater Manchester, informs motorists that they can also pay using PayByPhone, one of the UK’s most successful parking apps.


Earlier this year, the music writer Pete Paphides was inundated with stories of bad experiences with digital parking, after tweeting about how his 84-year-old father had struggled to use an app when trying to arrive on time for a friend’s memorial service in Birmingham.

“It was him and a load of other Cypriot old-timers, all phoning their kids because there was nowhere else to park and they thought maybe they could get in touch with the company and explain,” said Paphides. “But of course you can’t get through to a human being.”

Paphides’ father died before he could pay the resulting fine, forcing the writer into a lengthy and unwelcome dispute with a debt recovery firm, requiring him to provide a death certificate.

Asked what options there were to help older people at cashless locations, Nottingham city council said it – like other local authorities – had set up pay points at local shops, where drivers could hand over notes or coins.

However, this option has the potential to be confusing, time-consuming and requires extra physical exertion for elderly or disabled people.

Caroline Abrahams, the charity director at Age UK, said the charity had found many older people don not have a smartphone or a credit card, meaning car parks that don’t take cash are no use to them.

“If they have mobility issues as well then it can be even worse, even completely preventing people from leaving their house,” she said. “We are still light years away from a world where digital tech can help everyone, and public bodies and businesses running car parks should recognise this.

“Operators may save some money by not processing cash, but it’s the digitally excluded in their communities, many of them older people, who are left paying the price.”

There is another way that councils could go, one in evidence on the harbour arm of the Kent seaside town of Folkestone. The land is owned not by the council but by a private company, the Folkestone Harbour & Seafront Development Company, whose website proudly states: “Our parking site does not use RingGo payment.”

Instead, the firm – owned by Sir Roger De Haan of the dynasty behind the over-50s brand Saga – hired a small company to provide an automatic number plate recognition system, which it plugs into its own payment website.

Although internet use is still the chief point of contact, no app download is required and the site is much more intuitive than an app, more akin to making a purchase from an online retailer.

Machines that accept cash are also on hand, as is a duty officer who can help out when things go wrong.

Luke Bain, a director of the Folkestone Harbour & Seafront Development Company, said the business was not only making money from its system, but visitors were finding it easier.

“We didn’t want people associating our car park with penalty notices and getting fined,” he said. “I expect councils just can’t be bothered to do anything different from the norm because they have limited resources.”

Newsletter

Related Articles

0:00
0:00
Close
After 200,000 Orders in 2 Minutes: Xiaomi Accelerates Marketing in Europe
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
New York Appeals Court Voids Nearly $500 Million Civil Fraud Penalty Against Trump While Upholding Fraud Liability
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
Child-free hotels spark controversy
North Korea is where this 95-year-old wants to die. South Korea won’t let him go. Is this our ally or a human rights enemy?
Hong Kong Launches Regulatory Regime and Trials for HKD-Backed Stablecoins
China rehearses September 3 Victory Day parade as imagery points to ‘loyal wingman’ FH-97 family presence
Trump Called Viktor Orbán: "Why Are You Using the Veto"
Horror in the Skies: Plane Engine Exploded, Passengers Sent Farewell Messages
MSNBC Rebrands as MS NOW Amid Comcast’s Cable Spin-Off
AI in Policing: Draft One Helps Speed Up Reports but Raises Legal and Ethical Concerns
Shame in Norway: Crown Princess’s Son Accused of Four Rapes
Apple Begins Simultaneous iPhone 17 Production in India and China
A Robot to Give Birth: The Chinese Announcement That Shakes the World
Finnish MP Dies by Suicide in Parliament Building
Outrage in the Tennis World After Jannik Sinner’s Withdrawal Storm
William and Kate Are Moving House – and the New Neighbors Were Evicted
Class Action Lawsuit Against Volkswagen: Steering Wheel Switches Cause Accidents
Taylor Swift on the Way to the Super Bowl? All the Clues Stirring Up Fans
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Apple Expands Social Media Presence in China With RedNote Account Ahead of iPhone 17 Launch
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Cambridge Dictionary Adds 'Skibidi,' 'Delulu,' and 'Tradwife' Amid Surge of Online Slang
Bill Barr Testifies No Evidence Implicated Trump in Epstein Case; DOJ Set to Release Records
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
The CEO Who Replaced 80% of Employees for the AI Revolution: "I Would Do It Again"
Emails Worth Billions: How Airlines Generate Huge Profits
Character.ai Bets on Future of AI Companionship
China Ramps Up Tax Crackdown on Overseas Investments
Japanese Office Furniture Maker Expands into Bomb Shelter Market
Intel Shares Surge on Possible U.S. Government Investment
Hurricane Erin Threatens U.S. East Coast with Dangerous Surf
EU Blocks Trade Statement Over Digital Rule Dispute
EU Sends Record Aid as Spain Battles Wildfires
JPMorgan Plans New Canary Wharf Tower
Zelenskyy and his allies say they will press Trump on security guarantees
Beijing is moving into gold and other assets, diversifying away from the dollar
Escalating Clashes in Serbia as Anti-Government Protests Spread Nationwide
The Drought in Britain and the Strange Request from the Government to Delete Old Emails
Category 5 Hurricane in the Caribbean: 'Catastrophic Storm' with Winds of 255 km/h
"No, Thanks": The Mathematical Genius Who Turned Down 1.5 Billion Dollars from Zuckerberg
The surprising hero, the ugly incident, and the criticism despite victory: "Liverpool’s defense exposed in full"
Digital Humans Move Beyond Sci-Fi: From Virtual DJs to AI Customer Agents
YouTube will start using AI to guess your age. If it’s wrong, you’ll have to prove it
×