ParkIt Hong Kong: Driving into the gap
Let’s face it – Hong Kong is not ideal for private cars. Apart from the high cost of insurance and petrol, the reasons nearly all boil down to space; there’s not enough for driving with ease or speed, nor for an adequate choice of parking. It can all make owning a car a truly marginal proposition.
But some relief – specifically a parking spot, where and when you need it – may be at hand if the efforts of Kyan Liew and Nicholas Yap gain traction. Their brainchild is called ParkIt, and it has already established itself as the ‘AirBnB for car parking’ in their native Malaysia. Now ParkIt is starting up in Hong Kong – but will it prove a match for the city’s uniquely challenging conditions?
From frustration to revelation
As is typical with matters concerning parking, ParkIt was born of frustration. As Kyan relates, “After graduation I went to work at a company in the CBD of Kuala Lumpur. I immediately faced the problem of parking. I had to pay at least 10% of my salary just to park 15 minutes away from my office”. To add insult to injury, “It was an outdoor car park, gravel surfaced, and if it rained I got wet.”
For many Hong Kong drivers, Kyan’s situation will be uncomfortably relatable. But for Kyan, it drove him to revelation: “I noticed that there was a residential building beside my office with a nearly deserted car park. If I could find someone who wasn’t using their space, I could park there. I could pay them 60-70% of what I’m paying now, and they should be quite happy to rent it to me.”
Kyan’s plan succeeded, and he was soon making a side-income by arranging similar parking for colleagues. An entrepreneur at heart, he quickly realised that he now had the makings of an actual business. Backed by investors, ParkIt was formally established in 2016, though for a long time, Kyan continued with his full-time job while tending to the company during evenings. Eventually it thrived enough to attract a second round of funding, allowing him to leave his day job and fully focus on his parking empire.
Broadly speaking, ‘AirBnB for parking’ perfectly describes what ParkIt offers. Like the accommodation brand, two kinds of customers visit the website: those with unused space to offer, and those in need of car park. The former group simply provide relevant details on their car park’s location, availability and characteristics and agree to ‘rent’ it to ParkIt. The latter peruse the site’s listings until they find a suitable spot, and make a reservation. It’s that simple, and for ParkIt – who collect a fee from both ends of the transaction – it’s quite profitable.
Why here?
But Hong Kong is not Kuala Lumpur. It is only natural to ask the founders why they chose the city as ParkIt’s first foray out of their homeland.
“We chose Hong Kong because it is well known that the parking problem is huge.” Kyan laughs. “Other cities also have parking problems, but not the publicity.”
“Another factor was the value of car parks in Hong Kong – a car park we pay US$50 a month for in Malaysia might be US$500 in Hong Kong. One customer in Hong Kong can be the equivalent of 10 in Malaysia – but my operational costs are about the same. Also, the majority of car parks in Hong Kong are privately owned, which makes it easier to penetrate the market than, say, in Singapore.
“Finally, people in Hong Kong might pay six months or a year in advance for a parking space. In Malaysia it’s usually month-to-month.”
The founders also highlight the relative ease of establishing a startup in Hong Kong compared to other countries. StartmeupHK has done their part by introducing ParkIt to partners such as Cyberport and in general raising the profile of the brand name. The latter is critical if the company is to become the ‘first resort’ of car park owners and users alike.
Nothing to disrupt, everything to gain
Another characteristic of Hong Kong in ParkIt’s favour is the absence of competition. As Kyan explains: “In Hong Kong, our supply comes from buildings with car parks – often owned by individual owners or investors. To rent them out, they often rely on property agents, whose real focus is elsewhere. Often, potential users simply have to physically go out and search for car parks, or take their chances on secondhand platforms or social media, which can be a bit scammy.
“In other words, there’s no dominant player yet, and there is a significant trust gap with what does exist. If we can position ourselves as a trusted party and reach them, we have a real opportunity here to fill that gap.”
Encouragingly, ParkIt managed to gain its first two subscribers in Hong Kong during the COVID crisis, even before the company had a real footprint here. Today its local operation is on a firmer footing, with a properly localised version of the website, a Hong Kong team, and a steadily widening supply of car parks. “As we build our supply, we will hang onto it by continuing to pay the owners. We hope to expand in this way until we control a big chunk of the total supply,” says Kyan.
“Eventually, if you want to find a car park, your best chance will be to do it through us.”
Advice to other entrepreneurs and startups
“Even if there is a fire, just walk through it. Once you’ve past through, you will have learned so much, gained so much knowledge, it will have made you stronger.”